Based on industry forecasts of price rise... Moores Law Mfg chip cost falls 10% driving Profit up 20%... Higher if bit shipments rise which they should.
Reuters news tonight..,,
SEOUL (Reuters) - Samsung Electronics Co Ltd does not expect a price war to break out in the semiconductor industry next year even though it is ramping up capacity, the chief executive of the world's biggest memory chip maker said on Tuesday.
"We'll have to wait and see how things will go next year, but there definitely will not be any game of chicken," Kwon Oh-hyun told reporters on the sidelines of an industry event. A Samsung spokeswoman confirmed his remarks to Reuters.
Memory chip makers have reported strong profits this year thanks to better-than-expected demand for personal computers and servers as well as careful capacity management. Analysts believe industry conditions will remain favorable in 2015, forecasting similar market dynamics.
MU Jan2015 Calls Point to a stock price of $34-$35 BEFORE Intel Beat+Guided Revenue EPS & GPM.
The MCHP falsity that caused.-20% chip stock drubbing is again refuted by the Intel Beat+Raises. The "GPM Beat+Raise" is the most obvious signal that DRAM+MPU Chip Demand is Rising with Confidence.
MU, INTC, Gartner Group, and IDC GROWING OUTLOOK for DRAM and PC is AGAIN JUSTIFIED.
GAP UP TIME FOR MU
Zhone Revenue has been rising since January 2013, increasing every 1-2 quarters in stair step fashion.
The CEO did a solid job at the conference call showing Zhone's position, growth, the "huge market potential" in FiberLAN...and while in the quiet period could only hint at the reorganization and increased Marketing & Sales push he is planning. This is the same thing he did at former companies he turned around. He will reveal the plan to Zhone's board and management, and then will reveal to us within a month.
Two impressive things lately on this CEO 1) He personally BOUGHT Zhone shares which he deems very underpriced and after turning around several previous companies he referred to his turnaround techniques as 2) "Not rocket science". After turning around several companies he finds boosting sales a kind of a routine for him. This is a brilliant company turnaround CEO with a golden touch. Zhone already is a great technology company.
ZHNE MoneyFlow popped far higher on July 18 and as seen in TC2000 daily chart has maintained that level. The reason is MMs know this CEO's successful track record of creating revenue recovery and selling companies for a large gain.
Let's watch to hear about the new Business Unit he mentioned and the stronger Marketing & Sales organization he is bolstering. The more I hear, the more I like. Let's hear his latest turnaround plan.. and then look for signed deals.
From reuiters news:
Memory chipmaker Micron Technology Inc posted fiscal fourth-quarter results and a revenue outlook that impressed Wall Street as signs of stabilization in the personal computer industry supported demand for DRAM chips.
Micron's shares surged over 4 percent in extended trade after the release of its revenue forecast and said it has seen strong demand from personal computer manufacturers. The company has been locking in DRAM prices with its largest customers, Micron president Mark Adams told analysts on a conference call.
Enterprise Server, PC Demand Strong with firm Pricing says Micron conference call
Retail Gaming equipment Demand Emerging Strong said Micron as well. This fits with recent Retail Revenue and Corporations beginning to spend on Durable Goods and Tech CapEx
Zhone 1 Day Charty MoneyStream Flat Still Since July 18. Highest number of Shares bought at 3.56.
Investors await CEO Plans Announced for growth and/or Sell Firm
Just the rumor that suitors may be looking at Angi's List caused the ticker to jump up 20% today, per CNBC Cramer's Mad Money show tonight..
ZHNE makes any verbal mention of considering strategic options....will appreciate this stock and get the buzz going the same day. This CEO' is in the driver's seat based on his multiple "grow & sell" selloffs of high value companies, which has a well-known reputation in this period of record high M&A activity and companies flush with cash.
Everyone is just awaiting the CEO announcement of the Fiber BU Plan, BU Leader, and any tease comments to immediately "fire up" the tired skeptics on the fence.
This is significant and barely being noticed by the analysts.
Likewise none reported AMD CEO's statement about seeing XP-driven and pentup demand-driven higher Commercial demand...but "needs to see more data" before saying anything firmer about the strength and breadth of Commercial CapEx purchases. Certainly they will see further strengthening as has been seen and reported by MU INTC MSFT HPQ MSFT AVNT. It is a sandbagged cautious outlook.
The short-term critics never see the makings of a turnaround because they ignore the foundational elements being laid and the market fundys. They did the same thing the past few years with LNG.
AMD is underpromising in a clearly upturning CapEx cycle...with these design wins in the pipeline and AMD's reputation for comeback dating back to the Sanders days in the '70s and '80s this will most certainly be heading higher. I predict mid or late quarter validation of rising demand and a snapback rally.
FROM NYT 20 minutes ago
As evidence grows that the German economy, the largest in Europe, is beginning to stall, Chancellor Angela Merkel expressed a growing willingness on Thursday to use government spending to stimulate growth, a possible shift in position that could ripple across the entire eurozone.
Ms. Merkel’s new tack, signaled in a Berlin news conference, may be partly a response to increasingly clamorous criticism from the International Monetary Fund, independent economists and fellow Europeans that her longstanding emphasis on balancing the federal budget needs to give way to pumping more money into the lethargic German economy.
If Germany in fact gives itself a bit more spending latitude, it would no doubt fuel the demands from its eurozone neighbors, most notably France, to have more budgetary flexibility to stimulate their own economies.
Mainly, though, its neighbors are counting on Germany to lead by example.
Based on 15 years professional work experience in the DRAM business ...
4Q orders are booked by Micron for Corporate contracts... & Consumer XMAS Demand stronger per FedEX WMART and ten Retailers hiring announced up 20% to 200%.
Micron BEAT Rev & profits and RAISED GUIDANCE Revenue 4Q. Market insanity worst 17 years the Past 8 days pummeled Micron price.5 points or 15%.
MU Price Target 40-60 analyst range which will be 33% to 100% value appreciation. Future Call Prices verify that in FY15 then higher FY16. PC DRAM Upcycle begun & IDC Gartner said is strengthening now and XMAS per report this week.
This is why after Micron recent Revenue & Earnings Beat they raised guidance
Zhone's CEO was announced 7 weeks ago. Having a background in being hired to "sell the company" in past corporations has led to the strong belief this is in the works for Zhone. (Former CEO sounded sad)
The time should be nearing for an announcement of the company is "considering strategic alternatives at this time" or such. Two months is enough time to grasp the company and develop a plan. Probably enough to begin initial talks with possible buyers.
MU BEAT+GUIDED when $34 / Share....MU was since Discounted 20%! Very Undervalued!...Deserves $35+
Credit Deserved for MU! News Media late to recognize PC strengthening. Gartner, IDC, MU, HP, Intel have reported actual growth and growing forecasts. Now the media can let these growing companies run!
Bellwether Intel Strong Chip Results & Stronger Guidance:
INTC BEAT REVENUE+EARNINGS...PROFIT UP 12%. Revenue Grew 8%....GUIDED Even Stronger with Expanded Gross Margins at 65% Up 50 basis points Q/Q... Gross Margins for Full Year Are Going Up for Next Quarter. Computer and PC Demand Stronger. DataCenter is solid.
(microchip rumor pummeled chip stocks unfairly down 20%)
Stronger CSX who BEAT+GUIDED Above Views in rail crude business Earnings Up 11% Revenue Up 6.7%. Largest rail carrier in Eastern US is proxy for freight volumes and energy coal volumes used.
from SiliconAngle website article:
As IDC’s latest Worldwide Quarterly Server Tracker reveals, sales are actually on the rise, and it all points to a half-decent outlook in the mid-to-long term.
IDC says that “factory revenue in the worldwide server market increased 2.5% year over year to US$12.6 billion in the second quarter of 2014 (2Q14).”
IDC says organizations have been spurred on to upgrade by the looming demise of Windows Server 2003, as well as a general desire to obtain the latest and greatest chips from Intel. It also says IT budgets are a little more generous these days as the worst of the recession fades away from view. Also popular was “volume servers”, aka low-end gear, which saw revenues rise by 4.9%.
August 26 ZHNE at $3.56
Oct 17 ZHNE at $2.15
Shareholder Value Change - 58%
During the conference call Zhone CEO said "I don't watch the stock price too much....it has been in the $3's".
Question: Is this CEO engaged? Does he care about shareholders? The stock price fell in half since he was named! He is hired to INCREASE shareholder value. Not ignore it as it halves in two months.
The glitter and excitement this CEO had faded. He hasn't done anything wrong; just hasn't apparently done ANYTHING. Shareholders have seen no plan or action that inspires. Consequently the stock slide to low $2s as investors were bored and weak hands wandered away.
Zhone CEO needs to get in tune with his company's stock price which shareholders care about, and take action to show steps are being taken to grow this company and elevate it. One analyst covers it.
Investors and potential interested investors seek evidence of anything to the upside:
* growth plan,
* increased funding,
* customer leads, opportunities, orders, shipments,
* new partners, or
* begin to work at a potential sellout deal or hint this is being considered for the right situation
Investment houses are attracted greatly to stocks OVER $5 / share which is their cutoff level.
Allowing it to slide to low $2 shows a CEO who SAYS he invested in in it and joined leadership to grow the company to a higher level, but at least so far.....hasn't DONE anything to grow the stock price higher.
Quite the opposite. So far. Come on Mr. CEO Turnaround show us your stuff.