U.S. stocks are flat this morning, with the S&P 500 (SNPINDEX: ^GSPC ) and the narrower, price-weighted Dow Jones Industrial Average (DJINDICES: ^DJI ) losing less than two points each as of 10 a.m. EDT.
The perfect crime
In a few years' time, technology executives and investors will marvel at the deal Michael Dell and Silver Lake Partners put together to take PC manufacturer Dell (NASDAQ: DELL ) private. I can't be certain of this, of course, but I think they will end up making out like bandits. The $13.65 per share they are preparing to pay is an insolent offer, yet the acquirers, particularly Michael Dell, are absolutely brazen, which is why I refer to the deal as a "heist." Where is the board, whose duty is to protect shareholders' interests, in all this?
Unfortunately, the company filed proxy materials this morning with the SEC, according to which the board is recommending that shareholders accept the offer when it is put to a vote in July. Admittedly, the counteroffer from hedge fund manager Carl Icahn and Southeastern Asset Management has not been made fully clear; multiple board inquiries regarding the financing of their offer have gone unanswered. However, that does not mean the board is obligated to accept the first fully financed offer it receives.
Top Prefered Companies To Own For 2015: InterXion Holding N.V. (INXN)
InterXion Holding N.V. provides carrier-neutral colocation data center services in Europe. It enables its customers to connect to a range of telecommunications carriers, Internet service providers, and other customers. The company�s data centers act as content and connectivity hubs that facilitate the processing, storage, sharing, and distribution of data, content, applications, and media among carriers and customers. The company offers colocation services, including space and power to enable customers to deploy IT infrastructure in its data centers; connectivity services; cross connect services; and monitoring services. It also provides managed services comprising systems monitoring, systems management, engineering support services, data back-up, and storage services. The company serves the digital media and distribution sector, enterprises, the financial services sector, managed services providers, and network providers. It serves 1,200 customers through 31 data centers in 11 countries. The company was founded in 1998 and is headquartered in Schiphol Rijk, the Netherlands.
Advisors' Opinion:- [By Damian Illia]
The company has a current ratio of 11.8% which is higher than the one registered by Facebook (FB), InterXion Holding N.V. (INXN) and AOL Inc. (AOL). But for investors looking for a higher ROE, Tencent Holdings Ltd. (TCEHY) could be the option.
- [By Lee Jackson]
Interxion Holding N.V. (NYSE: INXN) provides data colocation services through its 34 data centers in 11 European countries. In 2012, the company generated approximately 62% of its total revenues from France, Germany, the Netherlands and the United Kingdom, which represents Interxion’s “Big 4″ markets. The remaining 38% revenue came from seven other European countries. The company�� data centers act as content and connectivity hubs that facilitate processing, storage, sharing and distribution of data, content and applications. The consensus price target for the stock is $20.78. Interxion closed at $22.52.
- [By Jon C. Ogg]
Interxion Holding N.V. (NASDAQ: INXN) was downgraded to Perform from outperform at Oppenheimer.
M&T Bank Corp. (NYSE: MTB) was downgraded to Neutral from Outperform by Credit Suisse.
Top 5 Tech Stocks To Own Right Now: NetApp Inc.(NTAP)
NetApp, Inc. engages in the design, manufacturing, marketing, and technical support of networked storage solutions. It supplies enterprise storage and data management software, and hardware products and services. The company offers Data ONTAP, an operating system that supports storage area network (SAN) and network-attached storage (NAS) environments; storage efficiency technologies, including FlexVol, FlexClone, and Deduplication technologies; storage management and application integration software, such as OnCommand management software; fabric-attached storage unified storage systems, which support a range of data for users on various platforms; and virtual storage tier; V-Series network-based virtualization solutions that provide SAN and NAS access to the data stored in heterogeneous storage arrays. It also provides data protection software products, including Snapshot, SnapRestore, SnapVault, and Open Systems SnapVault techologies; MetroCluster products; and SnapMirror data replication solution. In addition, the company offers data retention and archive products, and Flash Cache modules; and storage security products for data security and key management in IP SAN, NAS, and tape backup environments; StorageGRID that enables intelligent data management and secure content retention; and professional services, global support solutions, and customer education and training. It serves energy, financial services, government, high technology, Internet, life sciences and healthcare services, manufacturing, media, entertainment, animation and video postproduction, and telecommunications industries. It offers its products in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company was formerly known as Network Appliance, Inc. and changed its name to NetApp, Inc. in March 2008. NetApp, Inc. was founded in 1992 and is headquartered in Sunnyvale, California.
Advisors' Opinion:- [By MONEYMORNING.COM]
According to IDC estimates, EMC's share of the storage hardware segment is more than 30%. That's about two-and-a-half times that of its nearest competitor, NetApp Inc. (Nasdaq: NTAP).
- [By jaggom]
Its potential peer like NetApp (NTAP) that specializes in IT-enabled business solutions such as data security, cloud solutions, and data management systems posted weak performance in the recently declared quarter. Also its growth prospects do not look very enticing as it registered net revenue of $1.71 billion, a marginal increase of 0.8% from the previous quarter.
Top 5 Tech Stocks To Own Right Now: Jack Henry & Associates Inc.(JKHY)
Jack Henry & Associates, Inc. (JHA) provides integrated computer systems and services for in-house and outsourced data processing to commercial banks, credit unions, and other financial institutions primarily in the United States. It engages in processing transactions, automating business processes, and managing information services. The company?s Jack Henry Banking brand provides integrated data processing systems to de novo or start-up institutions and mid-tier banks, as well as markets three core banking software systems, such as SilverLake, a robust IBM i-based system designed for commercial-focused banks; CIF 20/20, a parameter-driven and easy-to-use system; and Core Director, a Windows-based and client/server system that offers intuitive point-and-click operation. Its Symitar brand supports credit unions with information and transaction processing platforms that provide enterprise-wide automation. This brand?s solutions include Episys, a robust IBM p-based system p rimarily designed for credit unions; and Cruise, a Windows-based and client/server system for credit unions. The company?s ProfitStars brand provides specialized products and services that enhance the performance of financial service organizations and corporate entities. Its iPay Technologies brand operates as an electronic bill pay for banks and credit unions with turnkey, and configurable retail and small business electronic payment platforms. JHA also offers complementary solutions comprising business intelligence and bank management, retail and business banking, member and member business services, Internet banking and electronic funds transfer, risk management and protection, and item and document imaging solutions. In addition, it provides data conversion, software implementation, training, and support services, as well as sells hardware systems. The company has strategic relationship with IBM Corporation. JHA was founded in 1969 and is based in Monett, Missouri.
Advisors' Opinion:- [By Jay Jenkins]
For U.S. Bancorp, a fine of this magnitude is nothing more than a slap on the wrist. However, it is a harbinger for change in how regulators view third-party relationships. Banks will now have to think long and hard about outsourcing, even to reputable companies like Jack Henry and Associates (NASDAQ: JKHY ) and Fiserv (NASDAQ: FISV ) .�
- [By Jay Jenkins]
It doesn't matter if the bank is a mega bank like Bank of America (NYSE: BAC ) , a regional player like BB&T (NYSE: BBT ) , or a third-party software provider like Jack Henry and Associates (NASDAQ: JKHY ) , the capabilities and usability of online banking services are noticeably stuck in the mud.�
- [By Seth Jayson]
Margins matter. The more Jack Henry & Associates (Nasdaq: JKHY ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Jack Henry & Associates's competitive position could be.
Top 5 Tech Stocks To Own Right Now: QLogic Corporation(QLGC)
QLogic Corporation engages in the design and supply of storage networking, high performance computing networking, and converged networking infrastructure solutions. It offers various host products, including fiber channel and Internet small computer systems interface (iSCSI) host bus adapters; fiber channel over Ethernet (FCoE) converged network adapters; and intelligent Ethernet adapters. The company also provides network products, which consist of fiber channel switches, including stackable edge switches, bladed switches, virtualized pass-through modules, and high-port count modular-chassis switches; Ethernet pass-through modules; and storage routers for bridging fiber Channel, FCoE, and iSCSI networks, as well as for migrating data between storage devices. In addition, it offers silicon products comprising fiber channel, iSCSI, converged network, and Ethernet controllers. Further, the company involves in the design and development of application-specific integrated circ uits, adapters, and switches based on fiber channel, iSCSI, FCoE, and Ethernet technologies. Its products are used in server, workstation, and storage subsystem solutions that are used by small, medium, and large enterprises with various business data requirements. The company sells its products to original equipment manufacturers and distributors worldwide. QLogic Corporation was founded in 1992 and is headquartered in Aliso Viejo, California.
Advisors' Opinion:- [By Eric Volkman]
Benck, who will also occupy a seat on the board, had been Emulex's COO since joining the company in 2008. He was appointed its president in 2010. Before Emulex, Benck had served in both capacities at QLogic (NASDAQ: QLGC ) . Earlier, he worked for 18 years at IBM (NYSE: IBM ) , where he helped establish the storied tech giant's blade server line.
- [By Sean Williams]
This week's loser
On the other side of the coin was networking equipment maker QLogic (NASDAQ: QLGC ) , which tanked 4.8% on the week after disclosing that its CEO, Simon Biddiscombe, had resigned on Friday. In the interim, QLogic's CFO, Jean Hu, will be the acting CEO. Anytime the management of a company changes, it provides a level of uncertainty that's bound to unnerve investors. I'd urge current shareholders (of which I'm one) to remember that QLogic has been consistently profitable for years, has $5 in net cash per share, and is poised to benefit from higher infrastructure spending. Patience will pay off here! - [By Geoff Gannon]
I��l focus on a particularly interesting case here: Q-Logic (QLGC). Q-Logic has a high buyback yield (around 12%). And it has a very, very high return on its buyback (about 25%). However, there is a complication with Q-Logic. It is using what I call ��nti-leverage.��This makes the buyback less effective ��because it�� actually much smaller ��than it first appears to be.
No comments:
Post a Comment