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Entries from November 2017

Peak Earnings In Analog Devices?

November 29th, 2017 · Comments Off on Peak Earnings In Analog Devices?

After substantial growth in its biggest sector, industrial markets the company might face some near-term cooling off, especially in the consumer sector. We’re also not convinced margins can be stretched in a meaningful way. The company does produce copious amounts of free cash flow and it does have promising longer-term growth opportunities. Source: Peak Earnings […]

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Tags: ADI

ServiceNow: Growing In The Fast Lane

November 29th, 2017 · Comments Off on ServiceNow: Growing In The Fast Lane

It looks like a combination of industry growth, new clients and up-sell opportunities to existing clients and new functionality will keep growth going for quite a while. Add to that operational leverage which is starting to kick in and the company should also do well on earnings and cash generation. However, there are some worries […]

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Tags: NOW

The Consequences Of Permanently Low Interest Rates

November 29th, 2017 · Comments Off on The Consequences Of Permanently Low Interest Rates

It is possible that, in the absence of rising inflation, interest rates remain extremely low for much longer. This has several important consequences for asset prices and the dollar, for instance. Add large tax cuts and financial deregulation in the mix and the cocktail becomes risky. Source: The Consequences Of Permanently Low Interest Rates | […]

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Tags: Economy · The Markets

Should Microsoft Buy Workday?

November 28th, 2017 · Comments Off on Should Microsoft Buy Workday?

Normally we’re not very keen on M&A, given their track record. However, Workday would offer several substantial benefits for Microsoft, more especially its efforts to spearhead its cloud platform Azure. Workday doesn’t come cheap though; Microsoft will have to pay through its nose for the company. Source: Should Microsoft Buy Workday? – Microsoft Corporation (NASDAQ:MSFT) […]

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Tags: MSFT · WDAY

Marvell Buys Cavium, Shares Go Parabolic

November 28th, 2017 · Comments Off on Marvell Buys Cavium, Shares Go Parabolic

Shareholders of the acquiring firm were unusually jubilant, suggesting they see enormous benefits of Marvell’s acquisition of Cavium. Benefits on top of an already substantial premium Marvell is paying for Cavium. We think this is a little over the top. More often than not, M&A activity fails to create shareholder value. And the acquiring company’s […]

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Tags: MRVL

The Applied Materials Super-Cycle Is In Full Swing

November 28th, 2017 · Comments Off on The Applied Materials Super-Cycle Is In Full Swing

We believe the company is in the midst of a super-cycle, fueled by a secular increase in the demand for memory and compute from many more sources. That growth is leveraged by a host of other factors for Applied Materials as discussed in the article below. This leads not only to improving revenues and EPS, […]

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Tags: AMAT

What China Can Teach Us About Economic Growth

November 27th, 2017 · Comments Off on What China Can Teach Us About Economic Growth

After the enactment of US tax cuts supposedly comes infrastructure spending. As experiences go, the latter is likely to be a bigger booster for economic growth. While the US economy actually doesn’t need any kind of stimulus right now, it does need better infrastructure. These plans would have been much better half a decade ago […]

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Tags: China · Economic Policy

MiX Telematics Is Accelerating

November 27th, 2017 · Comments Off on MiX Telematics Is Accelerating

This SaaS fleet tracking company had a rough 2017, but it is emerging renewed and firing out of all cylinders. Revenues, ARPUs and margins are all growing and we don’t see this stopping in the near term. Indeed, management increased guidance and the shares are still not expensive. Source: MiX Telematics Is Accelerating – MiX […]

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Tags: MIXT

Cypress, As Good As It Gets?

November 27th, 2017 · Comments Off on Cypress, As Good As It Gets?

Cypress is executing well on its transformation towards higher growing markets in the IoT sector and more sophisticated solutions. They also have more temporary tailwinds in the form of increasing capacity utilization, USB-C ramp and the memory pricing environment. We think the shares still have something left in the tank. Source: Cypress, As Good As […]

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Tags: CY

Cypress, As Good As It Gets?

November 21st, 2017 · Comments Off on Cypress, As Good As It Gets?

Cypress is executing well on its transformation towards higher growing markets in the IoT sector and more sophisticated solutions. They also have more temporary tailwinds in the form of increasing capacity utilization, USB-C ramp and the memory pricing environment. We think the shares still have something left in the tank. Source: Cypress, As Good As […]

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Tags: CY