Folks, INTC is a strong sell. Yes, I understand that I should not make a powerful and certian statment like that, but the 18.60 daily resistance failed again after the first attempt on 6/19/06. Besides, look at the anemic volume.
According Bear Sterns and data from released from ComScore, Google could grow sequential net revenues north of 11%, to $1.7 billion. The have raised their net revenue estimate to $1.7 billion from $1.63 billion.
With BBY announcing that they will be selling Apple Macs, Apple's growth in the second quarter may be inhanced. With the companyâs new product pipeline and an improving competition position, with an OS update coming by year end, Apple is well-positoned to outperform over the next several quarters. Meanwhile, Rebecca Runkle of Morgan Stanley said that she expects a bunch of new Apple product soon, including a new Nano, a Mac Pro to replace the PowerMac, a new video iPod and possibly an upgraded operating system-- All of which should help accelerate revenue momentum in C2H06.
Bought 1 block at 25.16 and sold 100 July 25.00 calls for 1.45/contract. After a nearly drop of 40% since Feb of 2006, the stock has reached a fair value. I also believe that the price war between INTC and AMD will boost PC demand in the second half of the year. At $25.16, AMD shares trade at 15 times 2007 GAAP earnings estimate of $1.65.
This coming Monday, Intel launches the Woodcrest processor at 10:00am pacific time. Industry analysts include the following: A. Original equipment manufacturers (OEMs) B. Operating system vendors (OSVs) C. Independent software vendors (ISVs) D. Industry alliances and standards bodies This dual-core processor launch is significant because it is the first product built on the new Intel Core microarchitecture, and is manufactured using the companyâs industry-leading 65-nm process technology. Early reviews and analyst reports show Woodcrest has a strong competitive advantage over server processors from AMD. Later this summer, Intel will extend its energy-efficient performance leadership with additional dual-core, 65-nm products -- the Conroe and Merom processors for desktop and mobile platforms.
Talks have been circulating at Merrill lately in ragards to a 50 billion plus hostile takeover of YHOO by MSFT. It has been the view of Merrill that Googles ongoing traffic share gains and greater focus on building a software platform (recent spreadsheet launch and Adobe partnership) increase acquisition probability. Consequently, such a takeout would highly increase YHOO's and EBAY's stock valuations.
Sandy Ward and John Aiken, head of research at Majestic Research, advised against Apple (AAPL), citing slowing growth in iPod revenues. The see second quarter iPod sales of 7.3 million units, which would be significantly below even the recently reduced estimates of other analysts, which are running 500,000 to 1 million units higher. While this may be true, how much of this news had already been baked in the price of the stock? I think quite a bit.
Bought 5 blocks at 14.62, and wrote the 500 July 15 calls for .20/contract. Outstanding fourth quarter results provided Oracle with some justification for the flurry of acquisitions completed over the past 18 months. Revenue increased 25%, including a 32% rise in the new software license category. Much of the 83% increase in application license revenue was due to the Siebel acquisition, but organic growth of 56% was impressive also. Oracle generated $4.2 billion of free cash flow in fiscal 2006, nearly a 30% increase versus last year. Similar to last year, Oracle spent significant working capital in the fourth quarter. Yet because working capital was a generator of cash in the first nine months of the year, working capital usage for the full year was negligible. Since Oracle does not pay a dividend and capital expenditures are modest ($241 million), virtually all of cash from operations becomes free cash flow. Share repurchases totaled $2.1 billion in fiscal 2006. This was a substantial increase compared to the $1.3 billion in fiscal 2005. Moreover, the company intends to buy back $1 billion of stock in each quarter for fiscal 2007. While $4 billion in annual share repurchases is substantial, our concerns are mitigated by our estimate for free cash flow of nearly $5.6 billion. Oracle is also stealing market share from SAP in applications, IBM in database, and BEA in middleware. Theyre doing that by emphasizing technological advantages.