Tag: goldman sachs

Apple not buying a lot of components

poison-appleIt looks like Apple has written off this year as an annus horribilis and is not buying nearly as many smartphone components.

According to Asian suppliers, Apple has cut the number of components down this quarter indicating that Apple things the market is going to be soft as a baby’s bottom.

The Tame Apple Press is having a job giving its favourite smartphone maker free publicity for the coming iPhone 7 because it looks like it is nearly identical to the iPhone 6S. It appears that Apple is not even trying.

Taiwanese chip firm Advanced Semiconductor Engineering warned that Apple was being more conservative in placing orders compared with last year.

Nikkei said that hat component suppliers in Taiwan would receive fewer orders from Apple in the second half of 2016.

Earlier this month, Goldman Sachs lowered its price target on Apple’s stock on worries about slowing growth in the smartphone industry.

At the time, the brokerage also lowered its fiscal 2016 forecast for iPhone shipments to 211 million units from 212 million units.

Apple reported its first-ever quarterly decline in iPhone sales in April and it is expected that the iPhone 7 will be a huge disappointment.  Apple’s shares have fallen 12.6 percent this year which is a little surprising given the amount of bad news the outfit has been doling out.

 

VR and AR next computing platform say Goldman Sachs

Joe90Investment bankers Goldman Sachs have dubbed virtual and augmented reality “the next generation computing platform.

A new video from the company has Heather Bellini, Business Unit Leader in Telecommunications, Media and Technology, says that the company believes to VR and AR market will reach $80 billion by 2025, roughly the size of the current desktop PC market.

At the moment the tech is expensive and primarily targeted at hardcore gamers and the porn industry. It is also very expensive because it requires heavy duty processing power.

Bellini said that in the estate agency business  instead of having to go see 50 homes with an agent over the weekend, you might be able to put on a pair of virtual reality glasses or a head mounted display at your realtors office and do a virtual walk-through of what those properties look like and therefore maybe you could eliminate 30 out of 50 on your list and be much more efficient with your time.

Goldman Sachs thinks VR and AR could be just as important could be just as disruptive as a smartphone

“We think this technology has the potential to transform how we interact with almost every industry today, and we think it will be equally transformative both from a consumer and an enterprise perspective,” she says. “At the end of the day we think VR and AR will be as transformation as the smartphone market.”

She said that the technology is there to do the job. Processors are fast enough, gpus are more powerful and all this makes sure tyou dont start feeling queasy as you’re starting to use these types of devices.

 

Twitter to float for $14.4 billion

A company that limits you to 140 characters to say something to the #universe will float on the New York Stock Exchange (#NYSE) today.

Twitter is valuing itself at $14.4 billion when it embarks upon its flotation.

It’s selling itself for $26 per share and selling 70 million shares.

The deal is being managed by Goldmine Sex and Twitter’s tick will be TWTR.

It hasn’t made any money yet. Important people at Twitter are expected to make a killing and TWTR turned in a loss of $134 million or so in the first nine months of this year.

HTC drags its feet in low end market

The HTC One has managed to turn HTC’s fortunes around, but its success is not helping the company in the mid- and low-end markets, Goldman Sachs has warned.

Goldman Sachs analyst Robert Yen wrote in a note to investors that positive changes are visible at HTC, but the company has underperformed in its mid-to-low end business, especially in china. Yen expects HTC’s shipments in China to remain flat this year, which sounds disappointing as other brands should see up to 75 percent growth.

Although HTC was the first major handset maker to enter the Chinese mid-range market a couple of years ago, cracking the frugal sector is proving more challenging than ever. The mid- and low-end smartphone market in China is dominated by local companies who offer smartphones with impressive specs for peanuts. Despite this, Yen sees better times ahead for the troubled smartphone maker, Focus Taiwan reports.

“We still think a recovery is in sight for HTC, with its flagship model, a healthy high-end competitive landscape, and ease of supply-chain bottlenecks,” Yen said. “But the disappointment at the low-end may still hinder operating margin recovery due to less scale benefits.” 

HTC is about to introduce a mini version of the successful HTC One and it rolled out the low-end Desire 200 last week. However, countless Chinese smartphone makers, mostly unheard of outside the country, are already selling heaps of cheap Android devices in all shapes and sizes. 

Perhaps it is a sign of things to come – at this rate big brands might find themselves outpriced and outmanoeuvred in China in a matter of years, so clinging to posh high-end gear could be the only viable strategy in the long run.

Goldman Sachs: Sell your HP shares

Goldman Sachs, the outfit which gave such sterling advice during the subprime mortgage scandal, has warned shareholders to dump HP stock.

Shares in the maker of expensive printer ink fell by six percent after Goldmine Sex downgraded the company to “sell” – warning that investors may be overestimating the company’s chances of a successful turnaround while it grapples with its declining PC and printing business.

On the face of it there is nothing that shareholders have not known for ages. HP is restructuring and chief exec Meg Whitman has said this will take years. HP’s hardware business is also struggling with intense competition in its servers and storage hardware division.

Goldmine claims that what is different is that the company needs to re-invest any savings from its current overhaul in research and business development. This means that its earnings may continue to come under pressure this year and beyond.

It claimed that all the other cocaine nose jobs on Wall Street seemed to think that the worst of things was over for HP and that there is an unreasonably high probability to the turnaround’s success.

The City thinks that HP’s fundamentals have bottomed, but antibiotics often do have the side effect of a bottoming your fundamentals, so we think that is a cause for sympathy.

“In contrast, we believe EPS expectations could face downward revisions in coming quarters,” Goldmine ominously said.

Reuters reports that shares of HP could be picked up second hand for $21.85 which was down 6.3 percent. 

Goldmine Sex board member allegedly involved in Rajaratnam case

More in the massive insider trading case of Galleon Group’s Raj Rajaratnam. Rajat K. Gupta, McKinsey executive and formerly on the board of Goldman Sachs, is expected to turn himself in to the FBI today according to a report.

Galleon Group’s Raj Rajaratnam recently got sentenced to 11 years in prison. The judge threw the book at him for abusing his position for financial gain, in a case which involved plenty of well known names in the tech industry, including Nvidia, IBM and Intel. The defence at the time said all of the information was in the public domain

However, according to the Wall Street Journal, Gupta’s lawyer, Gary Naftalis, says he’s an innocent man. In a statement, he said Gupta “always acted with honesty and integrity.” Gupta plans to fight all charges, and according to the lawyer, he “did not trade in any securities, did not tip Mr Rajaratnam so he could trade, and did not share in any profits as part of anyquid pro quo.”

The prosecution alleges that Gupta whispered trade secrets in Rajaratnam’s ear – including Goldman Sach’s first ever public quarterly loss. It is also alleged that, while on the Goldman Sachs board, he told Rajaratnam about Warren Buffet’s Berkshire Hathaway $5 billion investment. 

Raj Rajaratnam’s jury heard a recorded conversation from 2008, where the Galleon founder told a Singapore colleague that he had been talking to someone on the board of Sachs. “I heard yesterday from somebody who’s on the board of Goldman Sachs that they are going to lose $2 per share. The Street has them making $2.50.”

The WSJ says Gupta was, however, heard on a tape telling Rajaratnam that Goldman was planning on buying a commercial bank. 

However, a chink in the prosecution’s armour is that Gupta isn’t thought to have taken any money for allegedly providing Rajaratnam with trade secrets. It’s expected that the prosecution will argue insider trading doesn’t require the handing over of money, and the relationship between the two is evidence of a corrupt and closed corporate culture.

Rajat Gupta would become the highest ranking corporate executive implicated in the case. 

HP chiefs get takeover shakes

HP has called in Goldman Sachs to fend off tentative approaches from Oracle.

Sources have informed the Times of India that plummeting shares are causing much concern among the directors at HP, with Oracle having considered making an informal approach to buy up parts of the company.

Shares have been heading south since Apotheker signed the suicide note to dump the PC business, along with the TouchPad and webOS.  The $10.3 billion Autonomy purchase was also considered reckless overspending by analysts and rivals alike.

Since Meg Whitman took over as ditherer-in-chief following Apotheker’s ousting, things have not gone well.  HP is losing market share while everyone wonders what’s going on, and Whitman has been lambasted for having little knowledge of the software and hardware business – having run a rather different business in eBay.

Now all of the turmoil has attracted Oracle which says it is willing to pick up parts of HP on the cheap. Oracle, which is locked in a bloody legal dispute with HP, is tipped to bid for the $18.7 billion server, storage and networking division. Which would be a real slap in the face and the death of Itanium.

The $46.1 billion market value is a fair bit more cash than Oracle has lying around. Sources say Oracle is not interested in the printer or IT services segments.

Disgraced HP CEO Mark Hurd may make a move difficult.  The tail-end of a lawsuit about his Oracle defection as co-president is that he should agree to protect HP’s confidential information.

This agreement also means any approaches couldn’t happen until early next year.

But this has not stopped HP execs from having a fright, and calling in the heavy mob to deal with upstart investors in case of any action from within.

Goldman Sachs has tipped up put in shareholder rights plans, which will make takeovers more difficult, according to the Wall Street Journal.   

Usually activist investors will buy shares on the cheap when a firm’s fortunes are on the downturn, before buying up shares and creating a position from which to agitate for change.  Which, of course, could open the door for Oracle.

Intel solar spin-off goes bust

Spectrawatt is bankrupt. It is a solar cell manufacturer which originally fell off Intel.

Intel turned out Spectrawatt back in 2008. Its factory eventually opened in May last year but closed as soon as December. Right now, Spectrawatt wants to flog off the tens of millions of assets it has and has filed for bankruptcy, reports the EE Times

Intel, the company which runs the world and its chips, proved that it can at least do some wrong. Intel Capital invested roughly $50 million in SpectraWatt. A subsidiary of Goldman Sachs, Cogentrix Energy, got involved too.

SpectraWatt says it’s not its fault. The problem lies in not playing well with others, namely vendor disputes. It also says it’s harder to operate compared to countries where there are higher subsidies and lower labor costs.

Solar cells are huge business, and as demand rises globally, Intel will hope to file this whole effort away in Room 101.

Rare earths price hike could soon be at an end

It appears that the end of the breathtaking price hike for rare earth materials is finally over, with reports that there will be a surplus by 2013 and even China looking to import.

That’s according to the Wall Street Journal. As the world’s largest producer of rare earth materials, accounting for 90 percent of the world’s production, China kicked of the meteoric rise in prices following a long period of relative stability through the nineties and throughout the last decade.

The decision for China to cut its exports by 40 percent kickstarted a climb from an average of between $5 and $20 a kilogram before jumping from just $10.32/kg in 2009 to a massive $13 recent average and also involved a stand off with the world’s largest importer, Japan.

All of which meant a swift increase in the share price of mining companies both inside and out of China as country’s have begun to clamour to grab hold of alternative sources.

It seems that the soaring prices that have been seen of late are expected to come down, with Goldman Sachs analsysts predicting a peak this year, with the supply/demand deficit of 18,734 tons this year eventually heading to a surplus in 2013.

However it could be 2015 before prices are lowered closer to the average seen before the China lead price hike.

 

Apple shares slip as Steve Jobs' liver decides future of tech industry

It seems the wealthy early investors in Jobs’ Mob view Apple as a sort of benign dictatorship – with the news that the turtlenecked one is taking medical leave severely impacting shares.

Last week, Apple shares hit a record high. Following Jobs’ announcement, AAPL shares, reports the Wall Street Journal, slumped as deep as 6.5 percent, potentially wiping $20 billion from market value. 

After the slip, stockholders received slight respite as they realised that this isn’t quite the End Daze, and Jobs’ liver is not Kalki – rebounding and then falling again by 3.7 percent to $335.63. Still, year on year that’s up four percent from the 2010 shut down point at 322.56.

The heretic Ballmer would probably disagree with saintly Apple’s idea that it is the most valuable technology company in the world, but the Wall Street Journal reports that the market cap is at $308 billion keeping it as top dog. 

Talking to Murdoch’s financial mag, Needham analyst Charlie Wolf says now’s a good time to buy because the long term game is, in his eyes, pretty much the same. Apple’s financial gusto is thanks to its “ability to redefine markets and industries going forward”. Not backward – we thought the Egyptians were fond of tablets too, but it’s true you couldn’t shoot birds at fortified pigs on them. 

According to Wolf, whether Jobs floats around the periphery or stays the cultish figurehead, Apple will be ok. TechEye’s Nick Farrell thinks he should take care not to become the first true media martyr of, yes, consumer electronics.

Early investors shouldn’t be worried in the slightest, Goldmine Sex  analyst Bill Shope tells the publication. Remember: “Apple’s multiple of 15.1 times earnings represents a significant historical discount, and we see no direct risk to earnings from this move.” For now though, Apple’s dosh could be “partially distributed to shareholders to stabilise the shares”.

We never thought we’d say it but the industry is treating Jobs as a Titoesque figure – transforming the pale white underdog computer into a prosperous project, and without him at the masthead fans, investors and the press are worried it’ll turn to pot. Analysts seem to agree: take a breather and it’ll be alright.

The public will stay enamoured by the gizmos for some time to come.