Glad to see there are others out here who wonder how that guy has a job, let alone on Wall Street, let alone on TV too. You can just see in his eyes that he really doesn't know what he is talking about...ever. He parrots some odd blend of things he hears from other sources. I swear a few weeks ago he said on TV that he sold his whole book and a 40-50% drop was imminent. Now ...now, he can't get enough TWTR? huh?
Book is some measurement of a floor, but 75-80% of their assets are goodwill and intangibles. Especially in this environment, those items would be heavily discounted by anyone looking to acquire. Tangible book (including cash on hand) is $600M or so. Eventually, they will likely have to take impairment charges on any under-performing assets they have bought and booked as good will.
If the $ actually continues to weaken v Euro, won't this get double hammered?
I didn't have a chance to listen or read the WDC call yet, but from the two stocks reactions today it would seem the street is viewing any WDC disappointment as more troubling to STX...or is it just an aberration? Frustrating
Huh...on point (4), how do you reconcile ""Same-store sales increased 4.2% at company-owned restaurants and 1.8% at franchised locations for the first four weeks of the second quarter of 2015 compared to 5.7% and 4.4%, respectively, for the same period last year."?
If you are right, that's a hell of a drop off.
So, AMZN and MSFT are doing well providing cloud-based business services, etc...and there is no shortage of other existing and potential players in CRM's space(ORCL, IBM, WDAY, SPLK, SAP)...why exactly does Salesforce get the valuation it currently gets? Do they have some sort of competitive moat that will allow for much higher margins, or what?
I don't get it...but if they see things regressing to that point, or anywhere near it, this should be sold...I suppose it's just conservative guidance, but then it's guidance is meaningless.
Not going to quibble on tangible (you're likely right) and I did read Hendricks saying they are almost out of powder with conventional buybacks, but he also said to look for a dutch tender (again) or a dividend in the future. Meantime, they could get lucky and lead a deal or two.
That said, my advise about a trade may have been wrong because they may have their hands tied about day to day buybacks as you said. Picked up some shares on the open though that are up ~3%.
If you only buy maybe 1K or so shares down here after ER, but well below TBV....wait for the company to buy the stock back, it's been a lay-up for a couple years.
Think Sir Larry Wildman v. Gordon Gekko in Wall Street, "....I could buy and sell you six times over Gekko...just to burn your #$%$..."
I don't think Yahoo will allow the link (Geekwire, search Zillow), but it's another in a series of articles on that site that details the increasingly litigious confrontation between Z and New Corp. Welcome to Rupert Murdoch's world. Rascoff and his Austrailian backers v. Murdoch. Unto itself it's probably no big deal, but it reminds me of how Murdoch will spend and spend just to burn his rivals.
I actually agree. If the market direction is higher over the next few weeks Z likely follows along. I think getting back into short higher, or closer to EPS release may be the call for those of us who are inclined to view Z as significantly over-valued.
"While the upcoming Q1 report and related 2015 guidance for the combined Zillow/Trulia could hold some “surprises” (primarily around agent growth expectations), we continue to expect 2016 to be a breakout year for Zillow’s monetization strategy"
So, now the analysts start their back-pedaling...now we have to wait until '16 for a "breakout year", and Q1/'15 giuidance "could hold some 'surprises'"...really? That is from an uber-bull analyst...another year of Rascoff's spinning and selling.
We'll see about top line growth, but what everyone on the long side will need to support current valuation is those cost synergies from TRLA and EBITDA margin expansion that the sell side is forecasting in their EPS models. They likely will get one quarter of benefit of the doubt if TRLA integration issues muddle next report.