Time for a bounce. HPQ oversold. HPQ going to $35.27 to $35.87 next week, at least for a moment.
Come on friends. I need my 13Mar $34 calls to have a bit of a profit. Cost me 50 cent.
The ARUN acquisition must spark a little enthusiasm for HPQ. Seems like a positive move for HPQ, and Meg made a good deal--IMHO.
Very true. No top line growth. Bottom line has improved since 2012. Hopefully, ARUN will add revenue and profits. Seems like a good acquisition at a fair price.
I agree that HPQ did not overpay for ARUN. $2.7B was reasonable--about 3x current revenue.
That said, $2.7B is a lot of money and the acquisition will take several years for HPQ to recover cost, and there is no guarantee. "Pricey" but not "over-priced" .
ARUN is a fast growing business that fits well into HPQ businesses. ARUN financials last quarter: sales of $210M last quarter, gross profit of $160M and overhead expenses of $90M, operating income of $21M and net income of $6M. The overhead expenses can be reduced and the sales increased with ARUN merged into HPQ--positive synergy in likely. The $2.7B purchase is a bit pricey, but the ARUN business profits might pay for the acquisition in less than five years--provided that HPQ management does not ruin ARUN innovation and momentum.
Meg Whitman is an effective leader, and she has done will running HPQ to date--IMHO. HPQ is currently oversold and undervalued. Give HPQ a PE of 15, and the price would be around $39. The average PE for the S&P 500 is about 17.
I expect that many of the 22.5M shares were shares sold short, naked. Goldman Sachs is usually right in their predictions of stock price. MNKD longs should be worried as the number of people on Afrezza are few. Talk by Sanofi and Mannkind regarding samples is nice, but prescriptions is the revenue stream. We need big growth in person using Afrezza within the next two or three months. Tell you diabetic friends to give Afrezza a try.
Goldman Sachs is a heavy. They tend to be right.
The number of scripts to date is not inspiring--about 300 to date.
The fact that the incidence of hypoglycemia is much lower when using Afrezza is very significant.
The fact mealtime insulin via Afrezza is superior is significant.
These two benefits are not on the label, but will be experienced by patients and doctors, but that will take time.
Cough incidence is low, but gets hyped.
I am very disappointed in the scripts to date, and worried.
Goldman Sachs downgrade is based on the lack of scripts. When will the scripts volume improve? Ever?
We need a big jump very soon, or Sanofi might give Afrezza back to Mannkind, which might doom MNKD.
A scripts count over 10,000 by May would be nice to see.
Some of the $3B annual sales of the now defunct Radio Shack will migrate to Best Buy.
The Radio Shack bankruptcy and closure is a net positive for Best Buy.
Best Buy has adjusted business processes and makes money.
I am gaming for a run to $43 after earnings on March 3.
What do you think the Aruba acquisition will do for HPQ stock price?
Seems like a plus for the company, long term.
Hewlett-Packard Co. agreed to acquire Aruba Networks Inc., a maker of wireless-network infrastructure used by hotels, universities and shopping malls, for $2.7 billion in cash to bolster its networking business.
Aruba investors will get $24.67 a share, the companies said Monday in a statement. With debt and cash, the deal has a value of $3 billion
Are the number of Afrezza scripts posted anywhere?
The stock price is extremely vulnerable until there is an acceleration in the number of patients choosing to use Afrezza. The numbers that I have seen look very weak: only 132 patients after one month on the market. If Afrezza was so great, why have the thousands involved in the clinical trials all switched to Afrezza not already switched? Please advise.
First, the sales force educates the doctors. Second, direct marketing to patients.
No sense send patients to doctors who are not prepared to provide Alfrezza services.
Mid-April we should see some growth in patients switching to Alfrezza.
New patients may be the first to try Alfrezza. I talked to a Type 1 and he said that he is fine with needles. That said, he has experienced several life-thretening hypoglycemic events due to taking two shot because he forgot that he already took a shot (drunk at the time).
Tell your diabetic friends to give Alfrezza a try.
Sentiment: Strong Buy
Probably ex-dividend near the end of May, similar to 2014
Announced Dividend Frequency Announcement Date Ex-Dividend Date Record Date Pay Date Dividend Type
$1.2000 Annual 05/12/2014 05/23/2014 05/28/2014 07/07/2014 Regular
Chinese companies tend to trade at low valuations. That said, CYD is a Bermuda company and the valuation is low by any measure. I find the diversification a bit odd: diesel engines and hospitality/real estate, but maybe that is a good.
With a reasonable PE of 15, CYD would trade at $45 with a dividend of 2%. Currently, the PE is about 6 and the dividend is 6%. As long as the world economy remains steady, CYD will be going to $25 this year--IMHO.
From the company website:
"CYI is a Bermuda holding company established on April 29, 1993 and has a branch office in Singapore with its principal operating office located at 16 Raffles Quay #39-01A, Hong Leong Building, Singapore 048581. CYI is listed on New York Stock Exchange under the symbol "CYD". Its two main businesses are engine manufacturing and hospitality operations/property development."
I agree. The earning report was very good. RIG management presented rational guidance through 2018. No mention of impending business breakdown. RIG is oversold and undervalued. The tangible book value is $38 and the RIG has stable operating profits and a dividend. The stock price should be headed to $25. The other oil service companies are down today. The market is dumping the whole industry.
Earnings reports are sometimes difficult to decipher.
Seems that RIG earned 95 cents per share in 4Q14 and $4.94 for FY2014.
Viewed differently, RIG lost $5.29 in FY2014 and lost $2.04 in 4Q14, apparently due to purging $2.987B in goodwill from the balance sheet. The tangible book value is now about $38 per share.
What would you pay for a stock paying a 60 cent dividend, that earns $5 per share, with a book value of $38? I suspect that RIG will trade towards $25 over the next few days. RIG is expected to earn about $2.50 per share in FY2015.
Paying 60 cents, which is 3% dividend--nice.
Analysts predict FY15 earnings of about $2.50.
Book value is $40 per share.
Cash is $2.9 Billion.
RIG oversold and undervalued.
Short sellers should cover.
$16 looks like a bottom to me.
Never short a dull market.
If the news was bad, the volume would be high with selling.
If the news was bad, the volume would be high with buying.
The volume is low, because there is no news. Everyone is waiting for the earnings report news after the market close today.
Tomorrow, the volume will be higher and the stock price might move a lot. Maybe up, maybe down.
I think RIG is oversold, and the price will move back to $20.
RIG stock price has traded above $20 since the 1990s, when oil was below $20 per barrel.
Are we going to see crude oil back below $20?
The future is somewhat hard to predict, but at current price of oil $50 per barrel, RIG is projected to earn $2.50 per share next year. RIG is oversold--IMHO.
Mutual Funds and Institutions bought RIG in recent months. Steve Newman, CEO bought 9800 shares in December 2014 at $20. Carl Ichan and Blackrock bought.
Short interest is 110M shares or 30% of the float (9 days to cover)--setting up for a short squeeze.
What would you pay for a stock with tangible value $40 per share, a 3.5% dividend, and earning profits of about $3 per year?
RIG seems oversold and undervalued. Oil exploration will continue, even at $50 oil. RIG is the leader in the industry, and the Swiss know how to manage money and investments.
$16 looks like a bottom. The low $14.50 was set in January.