I give up XC - You are totally a waste of my time. I guess you just can't answer a question? No idea why you post here vs. the Rambus and AMD boards unless your short. But I doubt you have enough money in brokerage account to transact a short.
Good luck to you.
P.S. Nvidia does have more cash than Apple on a percentage basis vs. market capitalization!
Check out the short amount on AMD. A Forbes article just posted...up 15%. But you will never understand....If it doesn't fit in 128 characters.
And again why do you never post on the Rambus and AMD message boards anymore. Is it because you know no one is interested in reading them. I'm all ears.....
Take a look at the insider sales on AMD. A few more cents for sure.
But hey keep posting by all means. Your the biggest tell in all of social media. And that is saying a lot in this Connected World!
Wonder why you never post on the AMD or Rambus message board anymore?....LOL
Interesting fact that Nvidia is not just selling a Tegra processor to the Auto companies but a complete motherboard with mobile dram, and flash memory and what ever else is needed. They also have kept and plan to keep the board pin compatible from year to year. Same size and all.
Now I know where all those MCP engineers went when Nvidia folded the business.
The good thing about this is an auto company can start designing with say Tegra 2 as Tesla did but with Auto design cycles two to three years long by the time they started shipping the cars they came with Tegra 3.
Each year the Auto companies can just plug in the latest board with the latest Tegra chip. This is important. No other competitor does this! Now there is one other little twist to this. Unless you are an uber rich kinda guy you keep your car much longer than one year. What if after 3 years you want to upgrade....well maybe just maybe there will be an aftermarket at the dealer with the latest and greatest. Ultimate Geek Fantasy....keep you car with the latest and greatest visuals.
I'm sure everyone picked up on this but GM dropped Verizon and will switch On Star over to AT&T in the spring. They have 6.5M On Star cars on the rode. And add a million a year. What does that mean? With the globalization of Auto production and sales wouldn't a Soft Ware defined data modem make sense with the huge number of LTE frequency bands. With 90% of all 3G networks(backup is still needed) worldwide are GSM as AT&T is, perhaps one of the first products using Nvidia's I500 Software defined modem and a design win Visual Computing Module from Nvidia will be GM
One last thing Audi just announced that they are going LTE in the spring on their A3 model. They already use Tegra with the modular concept. They have not announced which carrier they will use, but Audi sells their cars around the world with little to no changes.
Note: Canaly's thinks the GPU market for autos will be $1.6B a year in 5 years
You are obviously more versed in this than I am. Probably much younger than I am too.
This is not a #$%$ contest. We both like Nvidia. You like the leverage. If I was younger I would be all over the leverage too, but alas I'm not. I'm tickled pink with the possibly/probably of $20/share in a year or so as you surely will be. We both will be happy....even though you will make a higher percentage return than I will.
Let's put this silly discussion to bed.
Thanks for your info. I know where you are coming from and I know it does work I'm sure. Guess I'm just too comfortable with stocks and dividends plus my age. While you will make a 3X to 4X return I will only make a 70% return. It's sounds fair to me.
For your information I have only bought naked calls or puts 3 times in my life and 2 were bought because I had inside information! I made a killing, thanked the Lord, and waited for the SEC but they never arrived. They never got down to my level in the companys I was at.
Statue of limitations has run out, but I promised myself I would never do that again.
Good luck to you. I will take the 30% in a year or two and do my gamboling every Wednesday playing poker. Try it is is a blast.
For your Info every Wednesday I play In a 5 to 6 hour poker game. You know the games I'm sure...Omaha Hi/Lo Pot limit, Holdem Pot limit.
My point is I usually win not the biggest winner of course. Slow and steady is my motto. Not always of course but when I lose it's minimal at best.
I'm older now, I don't need a 10 or 15 bagger like you do. Had those when I was younger. That's not to say I don't spread a little money into speculative stocks. It's fun...but high stakes poker is so much more fun. Try it and I'm sure you will agree.
Note: If AMD makes the Global foundries $404M payment this quarter and the $250M next quarter and breaks above $5 then I might consider it. Until then, it's just small time traders trading.
In the meantime good luck to you.
oh I forgot the call spread hedges pay the bond holders. Check out SanDisk investor relations report on 10/16 on the 2017 Convertible note.
So stock dilution happens above a price of $27.14. I've been reviewing Sandisk Convertible note history. $1B in 2006, $1B in 2010, and $1.3B in Oct of 2013. Goldman Sachs did the last one as the sole book runner as GS was for Nvidia's first entry into financial engineering. What is remarkable is Sandisk does another one just when the stock price is almost to the warrant price. The convertible note holders are happy they make money because they are in the money, the bankers are happy they make money, the shareholders are happy thru share buy backs and dividends, and the company is happy thru lower cost of borrowing.
Can't figure out who the loser is...there has to be one. Time will tell.
Note: take a look at the Jan 2016 leaps...They have jumped 20% since the announcement. Perhaps that was part of the call hedge.
P.S. I only buy stock...such a conservative old fuddy I am but I do understand the reason to buy leaps.
For Nvidia, the decision to sell stock at a premium (via the convertible bond) to return capital to shareholders seems counter-intuitive. After all, it had US$3.03bn of cash (US$5.25/share) as of October 27, seemingly providing it with plenty of capacity for share repurchases and dividends.
The dilemma is that US$2.4bn of that cash hoard is trapped offshore, and it would have to pay 35% taxes to repatriate it. The CB is therefore a superior alternative.
In addition to facilitating the immediate repurchase of stock at unaffected prices (via the so-called “happy meal” of selling the CB and providing a delta hedge to arbs), the deal offers added benefits of flexibility. The US$93.6m spent by Nvidia on a call-spread overlay offsets economic dilution to share prices above US$27.14, a 75% premium to current levels. If that dilution does not happen, the deal acts as a fixed-income instrument.
Moreover, the cost of the call-spread, whereby the bond’s embedded call option is repurchased and warrants are sold at a higher strike price, can be amortised over the life of the bond, providing a tax shield. In this case, that equates to an all-in, after-tax cost of 1.4% annually, with any coverage on dilution limited above 75%.
For one thing, arbs lost money on Yahoo’s recent US$1.25bn, five-year CB. While Yahoo shares are up 3% since its CB priced, the bonds themselves were quoted last week at 99.375–99.875 versus par pricing, meaning that arbs have lost a combined 1.25 points taking into account their short position on the stock and their losses on the bonds, said traders.
“[Yahoo’s deal] was a wake-up call for a lot of investors because of the aggressiveness [at which] it was priced,” said one CB trader, alluding to the 0% coupon and 50% conversion premium. “I would call it crowding out. We saw a lot of tech names sell off as investors had to allocate for Yahoo and de-allocate out of other names.”
It was also the case that the Nvidia CB was not that attractive to CB arbs from a technical perspective, given negative carry from paying dividends on borrowed stock relative to coupons received on the CB.
“Investors are starting to exercise a little muscle on pricing,” said one hedge fund manager. “No one wanted a repeat of Yahoo.”
Regardless of investor orientation, pricing of the Nvidia CB was aggressive. The bonds, which cannot be called or put for life, were quoted on Tuesday near issue price, versus a 1% rise in the underlying shares to US$15.66.
Cash-rich technology companies rewarding shareholders is a theme that has played out this year across the capital markets. Highlighted by Apple and its five-part, US$17bn debt raising in April, the typical modus operandi has been to fund domestically with straight debt and use low-cost capital to initiate shareholder-friendly policies.
Nvidia became the latest technology company to follow suit, although it joined the throng tapping the convertible bond market, via a US$1.3bn deal last Monday. The video graphics maker flagged a series of activities to return US$1bn of capital to shareholders through fiscal 2015, including a US$200m stock buyback in conjunction with the CB placement, as well as to support dividends on its common stock.
The upfront buyback was much smaller than planned, highlighting the outright orientation of investors that participated.
Goldman Sachs, sole bookrunner, set pricing on the five-year CB at a 1% coupon and 30% conversion premium, the mid-point of 0.75%–1.25% and 27.5%–32.5% respective price talk. The bank was only able to call upon convertible arbs to delta-hedge US$14.3m on the share repurchase.
“We would have been fine with more hedge fund participation,” said one CB source at the bank. “Because of the 2.2% dividend yield [on the underlying], the hedge guys were not super-enthusiastic.”
There are several reasons for muted demand from convertible arbs.
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The NX-7110 integrates NVIDIA GRID and Teradici PCoIP technologies enabling users to work with the same graphics applications that they use every day, but via a desktop that is delivered virtually. Combining NVIDIA’s GRID and the Teradici PCoIP Hardware Accelerator solutions with the scalability and performance of Nutanix’s virtual computing technology enables enterprises to tackle virtual desktop deployments of unprecedented size and scope. For the first time, enterprises can move away from expensive and rigid physical workstations and applications to be accessed from anywhere, using any device. With the NX-7110, even the most demanding graphics applications can be delivered to an inexpensive laptop or mobile device with performance rivaling that of expensive desktop workstations."
There is no way Intel can avoid a capital expense cut and/or a layoff unless they intend to cut the dividend. I bet I know which one they will choose. P.S. Intel likes to do these things at the end of Q1. Check it's history.
HP Slate 8 Pro - sold out a few days ago
HP Slate 7 Extreme - sold out today - less than 48 hours
Newegg - has their 3rd batch of EVGA Tegra Note 7 in today
They seem to be selling more volume than I thought. In fact I wonder why the batches aren't bigger. Is there another customer out there accumulating for a big launch? Or did Nvidia under estimate the demand.
Another little note----and I know XC will be all over it. But Nvidia has put the shield on sale for $249 with case and games. 10 different retailers are selling it including Best Buy. Different kind of bundles by retailer. I'm sure the quantities are small - maybe 10,000 all total this year. It's like they are preparing for a Tegra 5 shield launch in January. We all know the Apple marketing model. Bring on the latest at the top price and price last year's model below it.
Does that Include the two 14 nm Fabs. One in Arizona and One in Oregon phase one fully equipped that are idle. Youneed to read that other Intel writer on S/A. The guy that writes about Micron a lot. He obviously is a retired Fab guy. Maybe even an Intellian. His numbers look pretty good to me.
"It's only a 1.5% GM hit in 2014 which still leaves Intel's GMs well above Nvidia's company margins just to keep it into some sort of perspective. 14nm SoC dies will be smaller, more integrated and won't need subsidizing."
All true Margins are 3 to 4 pts above Nvidia. Not the customary 8 to 10 pts. though. Not my issue with Intel at all though. It's simply the small SoCs can't fill the fabs even if Intel wins every socket available sans Apple and Samsung. Think of Core I PC sales down a third in 2 years. Foundry can fill up the fabs, but it's a 35 to 40% gross margin business. Check out TSMC financials.
Capital spending has to be cut next year. It's that simple.
so 40,000,000 Bay Trail tablet processors at 105 mm^2 would take about 5,000 to 6,000 wafers per month. Not much help in getting Intel's Fab utilization off the floor.
Let's see how this plays out.
Oh well...Nothing like an unconfirmed, unidentifiable, and untraceable rumor to pump a stock price.
But this is the new Nvidia and it just won't wash. I'll wait for the official news release. In the mean time the Whales have the stock price well in hand.with Nvidia's Note Offering
Social media is just not what it use to be. So sad!
Long Nvidia...but short this kind of BS
And who did?
Ashraf..post your picks on the Motley Fool rating system. Almost all of the Motley Fool writers do, except you. Why? Then everyone will know when they read your twice a week articles there how good your advice is.
Sorry, but you are in the public domain and are fair game. LOL
In the meantime...love those Intel Road Maps. Keep them coming.