Mellanox storage opportunity underappreciated, says Summit Research
Summit Research said Intel's (INTC) launch of Grantley server chips is expected to trigger a server upgrade cycle the will benefit Mellanox (MLNX) in the HPC segment. The analyst expects HPC customers to being to upgrade HPC infrastructure across the entire server eco-system, which is underappreciated by the the Street. Shares of Mellanox are Buy rated with a $54 price target.
Through the first three days of this week, the Baltic Dry Index has decreased by 25 points to 1063 points. This represents a decrease of 2.2% from the end of last week. However, Monday was a holiday in the UK and all expectations are for rates to find significant support during the rest of this week. Capesize freight rates in particular are poised to find a very large amount of support. Global spot chartering activity has decreased this week, but there have only been two official chartering days. A total of 46 dry bulk cargoes have been chartered in the spot market so far this week. In comparison, 50 cargoes were chartered during the first three days of last week.
The capesize market is continuing to turn quickly and is poised to increase much further during the upcoming weeks and months. Many analysts expect capesize rates will reach at least $30,000/day relatively soon, with others believing capesize rates will see peaks this year well above $30,000/day. The last few weeks have seen several days where capesize rates have jumped by a very large amounts. Capesize rates increased by $1,890 on August 14th, by $1,598 on August 15th, by $648 on August 20th, and by $1,070 on August 21st. All of these large daily jumps show that much less capesize vessels have been available to be chartered, which leads to great strength in rates. Demand for capesize vessels is very strong already and is set to rise even further during the next several weeks, but capesize fleet growth is now very low. As a result, capesize rates will rise even further. Overall, demand for capesize vessels has been strong in both the Atlantic and Pacific, and demand is set to rise even further in the near term.
ndian power plant coal stockpiles have now fallen to 9 million tons, the lowest level seen in over one-and-a-half years. Indian electricity demand has continued to surge but hydropower production has stayed under pressure as India continues to witness a much weaker than normal monsoon this year. Thi
The daily average rate to hire a Capesize, each able to carry about 160,000 metric tons of cargo, climbed 93 percent this month to $16,877, data from the Baltic Exchange in London showed today. That was the largest increase in 11 months. Costs advanced 31 percent, the most since August 2010, to $24.45 a ton on the Tubarao-Qingdao voyage.
“Capesize rates are set to increase much further during the upcoming weeks and months,” Jeffrey Landsberg, managing director of Commodore Research, a New York-based adviser to ship owners, said by e-mail. “Availability of Capesize vessels is already tight, and a great deal more cargoes, particularly Brazilian iron-ore cargoes, are set to come to the market during the next four months.”
Video: Iron Ore Prices Will `Drift Up,' Fortescue CEO Says
Australia and Brazil are the world’s two biggest exporters of iron ore, used to make steel, and China is the largest importer. Brazil has a disproportionate effect on shipping because it’s three times further from China than Australia.
To contact the reporter on this story: Naomi Christie in London
iPhone 6 (4,7" Sapphire Display) Version Silver Running On iOS 7 is used by Apple Developer Fabien Wanner. You can see the Iphone 6 and the confirmation of Sapphire on Twitter under Fabien_Wanner.
Apple's much anticipated 5.5-inch iPhone 6 will be delayed as the company struggles to find a sufficient battery to fit the phones ultra-thin design, MacRumors reported Tuesday, citing Taiwan's Industrial and Commercial Times.
The device, nicknamed "iPhone Air" by industry insiders, will be released sometime in 2015, the report said. Sources with knowledge of the matter previously reported the phone would be released in September.
Apple's can't text and drive patent
According to Tuesday's report, Apple is looking for a battery that measures 2 mm or less in thickness versus the industry standard of 2.8 mm to 2.9 mm.
In addition to a larger screen with a higher resolution, the next generation of the iPhone is rumored to feature a faster processor, a Touch ID fingerprint sensor and an upgraded camera with optical image stabilization.
Apple did not immediately respond to CNBC's request for comment.
Analysts at UBS raised the price target on GT Advanced Technologies (GTAT) to $22 from $20 suggesting 31% upside. It maintained its “Buy” rating on GTAT shares.
“GT’s new products’ portfolio includes 1) Hyperion, a high power ion implant tool for making thin sheets of mono-crystalline materials (estimate $1bn market by 2017); 2) Merlin, a lower cost material alternative for solar cell interconnects replacing silver (est. $1bn market by 2017); 3) Deposition tools (HVPE and PVD) for making LED epi wafer templates (est. $100M market by 2017), and 4) HiCZ furnaces making mono-crystalline solar wafers (estimate $1bn market by 2017).” UBS said in a note to clients.
“We believe new product sales which will help lower sales exposure to Apple to be a positive in the longer run and estimate GT’s gross margins on the new products to be in-line with its corporate average. We estimate equipment gross margin to be in a range of 35-40% and materials gross margin to be in 25-30% range. We expect Hyperion for sapphire and Merlin for solar to be the most meaningful contributors to GT’s sales in 2016 with initial orders expected in 2H14.” it added
Beijing-based market research firm Marbridge Consulting Ltd. reported that Alibaba, China’s biggest e-commerce company, is negotiating the terms of an investment.
“We believe one of GT’s analyst meeting highlights could be its HVPE tool and its licensed PVD tool from Kyma Technologies and how both tools combined might potentially enable customers to make solar cells directly onto mobile devices for battery charging purposes. We would view usage of any equipment in GT’s existing portfolio that expands its addressable market positively.” it added
Goldman Sachs reiterated a Buy rating on GT Advanced Tech (NASDAQ: GTAT) with a price target of $20.00. Comments follow announcement it signed of a $336 million supply agreement with Cosmos Chemicals Berhad to provide equipment and technology for a 25,0000 metric ton annual (MTA) polysilicon facility, a project sponsored by Saudi Arabia based Project Management & Development Company (PMD), that will be located in Sarawak, Malaysia.
"We reiterate our Buy rating on GTAT and continue to view the company as well positioned to benefit from an emerging polysilicon capex recovery – a supporting tenet of our positive thesis from our initiation of coverage (see our March 3 report). We estimate GTAT will supply 40-60 of its latest SDR CVD reactors for the proposed 25,000mt facility, worth $200-$300mn in revenue and representing a portion of the $1.8-$2.0bn of potential polysilicon projects we currently track. We see the PMD/Cosmos proposed facility as a positive signal for a potential capex recovery in polysilicon given its implication that (1) proposed projects are beginning to find traction and move forward, with the potential to drive new orders for GTAT moving into the latter part of 2014 and (2) GTAT was able to expand its relationships with customers in the burgeoning polysilicon industry in the Middle East (e.g., PMD)," said analyst Brian Lee.
"We believe the market is currently only discounting $0.50-$1.00 per share of value for GTAT's legacy equipment backlog, which we expect may see a valuation reset as the polysilicon capex cycle positively inflects. We also expect a deep dive into recent equipment innovations and updates on its new technology strategy at the company’s analyst briefing on March 14 – a potential catalyst, in our view," he added.
BofA Merrill Lynch raises price target on GT Advanced Technologies to $21.50
March 11, 2014 BofA Merrill Lynch raises price target on GT Advanced Technologies to $21.50
In a report published today BofA Merrill Lynch raised the price target on GT Advanced Technologies (GTAT) to $21.50 from $18.50 and Reiterated its “Buy” rating on the stock.
“GTAT announced a new agreement with Cosmos Chemicals Berhad to supply poly reactor and technology (we estimate FBR technology to make TCS, Siemens to make silicon) worth $336M for a 25K MT/annum polysilicon facility in Malaysia. Given that GTAT’s polysilicon backlog was ~$300M exiting C4Q13 and the orders were well below that, this news is incremental, in our view. This also highlights the fact that GTAT is more than just an AAPL supplier.” BofA Merrill Lynch said
“We reiterate our Buy rating. GTAT should benefit as the supplier of Sapphire for mobile applications to AAPL, the polysilicon reactor (non-sapphire) segment bottomed out in the December quarter (4Q13 revs 98% below the peak in C1Q12). As fundamentals improve, the rev/EPS should recover off the trough levels in CY13.” it added
Ocean Rig Athena, last of the three sister-drillships, will be delivered in March. Has a backlog of $757 million. That might give the firepower to drive price higer than $5. So any day now
Rates for capesize bulkers trading in both the spot and period markets were on the rise yet again this week and some of the most notable names in shipping appear to be cashing in on the action.
Analysts say there's been an uptick in demand for capes to move iron ore from Brazil to China due to the recent dip in ore prices.
On Wednesday the Baltic Exchange noted there are rumours that a cape controlled by Navios Maritime Holdings (Navios) of Greece was fixed for $30,000 a day.
In a daily market note the organisation said the 179,200-dwt Navios Etoile (built 2010) was taken for a year but admitted the identity of the charterer isn’t clear.
Brokers claim Cargill paid $29,000 per day for the 169,053-dwt Navios Antares (built 2010) in a fixture with the same duration but noted the cape was relet to the charterer, which means it’s unlikely that Navios is poised to profit from this transaction.
It is also widely believed that the same commodities trader picked up the 203,100-dwt Newmax (built 2012) from Athens-based bulker operator Transmed Shipping for 24 months at a rate of $31,000 daily, the Baltic Exchange told members today.
Market sources say SwissMarine has been active on the period front as well after firming up a fixture tied to the 181,000-dwt Frontier Expedition (built 2013), which fetched approximately $28,000 per day in a deal with a duration of 11 to 13 months.
These contacts also claim the same charterer decided to hang on to the 180,100-dwt Pacific Resource (built 2010) for another year at a rate of $27,800 per day but were unable to agree on how much the ship had been earning prior to the extension.
In response to the rising tide of premium period deals Fearnleys and other European brokerages that follow the drybulk market are telling clients they would not be surprised to see freight rates surpass the $30,000 mark with increased regularity in the coming week.
Chinese solar bear Raymond James analyst Pavel Molchanov said, just like last quarter, the earnings quality is not good:
Recall, in 3Q Trina achieved profitability for the first time in two years, but only slightly, and with all of the EPS coming from a currency gain and an income tax benefit. It was a similar picture in 4Q, with “other” income and a reversal of accounts receivable provisions comprising the bulk of the modest earnings
Tim Cook Says Apple's Sapphire Facility Is for 'Secret Project'
Friday February 28, 2014 2:19 pm PST by Jordan Golson
Sapphire BouleWhen asked about Apple's U.S. manufacturing efforts during a question-and-answer session with Apple shareholders today, CEO Tim Cook said the company's new sapphire production facility was for a "secret project" that he couldn't talk about, according to a report in The Wall Street Journal.
Cook did not give any more information, but did say separately that the company is working on "extensions of what we're already doing" and also "things you can't see". He reiterated that secrecy is important because Apple is "getting ripped off left, right and sideways" by competitors.
In response to a question about manufacturing in the U.S., Cook pointed to a plant a supplier recently opened in Arizona to produce sapphire exclusively for Apple. There’s been speculation that Apple may use the super-hard sapphire to produce scratch-resistant screens for future iPhones. Cook said the Arizona facility was a "secret project" that he couldn’t talk about.
But then, he said other Apple suppliers "already make" glass for iPhones in the U.S. An Apple spokeswoman declined additional comment.
Apple routinely denies having any particular new project in the works, so it's possible that a future iPhone model with an ultra-durable sapphire screen is the "secret project" to which Cook is referring, though there are a number of other possibilities for sapphire crystal including a potential smart watch product.
Cook previously confirmed that the plant would make sapphire, but the company has thus far refused to say anything more about it. He also said that investors should plan to hold Apple stock for the long term, saying to investors looking for a quick turnaround, "I encourage you not to invest in Apple."
Polypore may be designed into cars from major OEMs. Stifel says Polypore management repeated its expectation to be designed in to over 100 vehicles by 2015/2016 and the company's comments implied those are expected to be with major brand carmakers. Stifel continues to view Polypore as competitively well positioned.