|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||32.65 - 32.65|
|52 Week Range||29.48 - 36.05|
|Beta (5Y Monthly)||0.73|
|PE Ratio (TTM)||1.12|
|Forward Dividend & Yield||0.19 (0.56%)|
|Ex-Dividend Date||Sep 26, 2019|
|1y Target Est||N/A|
(Bloomberg) -- Toshiba Machine Co.’s shares soared after the company said Japan’s best-known activist investor, Yoshiaki Murakami, plans a tender offer.The stock jumped as much as 19% to 3,700 yen in Tokyo on Monday, the biggest intraday gain since October 2008. Toshiba Machine said late on Friday that it first learned of the possible bid from Murakami vehicle Office Support on Jan. 10 and expects the tender offer to begin tomorrow.The announcement came just hours after Toshiba Machine confirmed it had agreed to sell its stake in NuFlare Technology Inc. to Toshiba Corp., even though Hoya Corp. had offered to pay a higher price for the shares. It’s not clear whether Murakami is seeking to disrupt or derail the NuFlare deal, which was seen as a snub to minority shareholders. Toshiba was already NuFlare’s largest stakeholder with 52.4% when it started the buyout. Toshiba Machine said it will book about 10 billion yen ($91 million) from the sale.“Murakami-san is looking for a combination of near- and medium-term actions which would lift the value of the shares,” said Travis Lundy, a special-situations analyst who writes for Smartkarma. “It is shaping up to be a hostile bid, but we still do not know terms.”Toshiba Machine said in a statement it needs 60 days to consider the offer and that it is prepared to issue new shares if Murakami proceeds with his tender before that. It said Murakami’s vehicle owned 11.49% and didn’t disclose details of the bid. Office Support, which launched a Japanese language website the day of the release, declined to comment when reached by telephone.“An activist investor has them in his sights, that should raise expectations for improvements in governance,” said Naruhiko Takatsuji, a senior analyst at Ichiyoshi Research Institute. “You could expect more pressure for shareholder returns, whether as a share buyback or higher dividend rate.”Last month, Minami Aoyama Fudosan, another fund linked to Murakami, reported it had a stake in NuFlare, a provider of equipment used to make computer chips, and said it may give advice or make proposals to management. Murakami is considered one of the pioneers in Japan’s battle for shareholder rights and he put forward the first hostile takeover bid by an investor in the country. In 2007 he was convicted for insider trading and sentenced to two years in prison, which was suspended on appeal.About a quarter of Toshiba Machine’s 44-page statement on Friday was dedicated to detailing Murakami’s previous deals. The company said his track record shows a history of disposing of shares at a profit and could go counter to management’s mission of increasing enterprise value.“One takeover defense that Toshiba Machine could undertake would be to launch its own tender for its own shares at a premium to the price that Murakami launches at,” Lundy said. “If Murakami’s tender fails, he would agree to sell to Toshiba Machine. It would return cash and get him out.”(Updates with Toshiba Machine’s response fifth paragraph)\--With assistance from Kazu Hirano.To contact the reporter on this story: Pavel Alpeyev in Tokyo at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Peter ElstromFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Toshiba Corp said on Saturday it "could not confirm existence" of transactions worth some 20 billion yen ($181.59 million) at one of its subsidiaries in the first half of this fiscal year, prompting it to revise past financial statements. The irregularities, which occurred over multiple years, were uncovered at Toshiba IT-Services Corporation, a wholly-owned subsidiary, as a result of an internal probe launched at the end of November, Toshiba said in a statement. The company has been trying to win back the market's trust after a 2015 accounting scandal uncovered widespread irregularities at the laptops-to-nuclear conglomerate for years.
Toshiba Corp said on Friday its succeeded with its takeover bid for chip equipment unit NuFlare Technology Inc, staving off a higher counter offer by Hoya Corp. Toshiba, which initially held 52.4% of NuFlare, acquired a further 32.3% through a tender offer that ended Thursday, achieving its target of securing more than a two-thirds stake. Toshiba was aiming to take over NuFlare as the Japanese government pointed to corporate governance issues with dual listings of parents and subsidiaries.
Toshiba Corp said on Monday it would extend the period of its tender offer for chip equipment unit NuFlare Technology Inc until Jan. 16. The extension of the offer, from the originally set Dec. 25, was requested by NuFlare to give its shareholders enough time for consideration after Hoya Corp made a counter offer for NuFlare, Toshiba said. Toshiba, which holds 52.4% of NuFlare, is aiming to take full control of NuFlare to reallocate resources to focus on growth.
Toshiba Corp said on Friday its board had decided not to accept Hoya's tender offer for NuFlare Technology Inc, saying the chip equipment unit was core to the group. Toshiba, which holds 52.4% of NuFlare, also said in statement there was no change to its own tender offer to take full control of NuFlare. Optical products maker Hoya has offered 12,900 yen per NuFlare share or $1.4 billion - a rare unsolicited bid in Japan, topping Toshiba's offer of 11,900 yen for each share it does not own.
Japan's Hoya Corp said on Friday it would make a $1.4 billion counter-bid for NuFlare Technology Inc in what could become a hostile offer for the Toshiba Corp unit, which the electronics conglomerate plans to buy out. Hoya's interest in the manufacturer of chip-making equipment further complicates a deal already being challenged by Japanese activist investor Yoshiaki Murakami, which has amassed a 6.2% stake. With Hoya offering a sweeter deal, it could also become another test case for Japan's corporate governance when it comes to seeking higher returns for shareholders.
Toshiba Corp's ownership restructuring plan faces a challenge, with activist investor Yoshiaki Murakami building a stake in a unit that the conglomerate aims to buy out, potentially making it sweeten an offer. Toshiba announced last month it plans to take full ownership of chip-making equipment maker NuFlare Technology and two other units through tender offers at a total cost of about 200 billion yuan ($1.84 billion). Regulatory filings show that funds backed by Murakami, Japan's most prominent activist shareholder, have built a 6.2% stake in NuFlare since Toshiba announced the tender offer for it on Nov. 13.
Moody's Japan K.K. says that Toshiba Corporation's (B1 negative) buyout of three of its listed subsidiaries does not affect Toshiba's B1 corporate family and senior unsecured ratings and its negative outlook. Moody's statement follows Toshiba's announcement last week that it will take private three partially-owned subsidiaries through a tender offer for about JPY200 billion in cash.
Toshiba Corp on Wednesday reported its highest quarterly profit in two years and said it will buy out three of its listed subsidiaries as the industrial conglomerate moves on from accounting scandals and a management crisis. Toshiba's energy and infrastructure divisions drove the profit increase, as the company cut costs and reined in low-margin projects. "We've changed everything, from marketing, procurement to the ways we take orders and produce products," Toshiba CEO Nobuaki Kurumatani told Reuters.
Toshiba Corp said on Thursday it filed a lawsuit against a former employee of a U.S. unit for conspiring with a contractor and defrauding the Japanese industrial conglomerate. Toshiba said in a statement its internal assessment had found evidence that a former facility manager at Houston-based Toshiba International directed work to a construction contractor at inflated prices and received kickbacks. Toshiba is still investigating the scale of damages from the fraudulent transactions, which started no later than 2011, as well as whether any other employees were involved in the fraud.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Toshiba Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Moody's Japan K.K. has affirmed Toshiba Corporation's B1 corporate family and senior unsecured ratings, as well as its Not Prime commercial paper rating. "The change in outlook to negative reflects Toshiba's dwindling cash balance due to unexpected cash outlays, as well as increasing uncertainty over its ability to turn around its profit," says Masako Kuwahara, a Moody's Vice President and Senior Analyst. Moody's forecasts that Toshiba has sufficient cash to cover the negative free cash flow and planned share buybacks at least over the next 12 months, but after that, it would need external funding to supplement its depleting cash balance.
A lot is happening on the macroeconomic front at the moment. Between the interest rate discussion and the U.S. trade war with China, companies like Micron Technology (NASDAQ:MU) are likely pulling their hair out, trying to figure out the direction of the global economy. And that's not a good thing for the owners of MU stock.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs another InvestorPlace contributor, Tezcan Gecgil, recently noted, Micron stock is incredibly volatile. * 5 Cheap Stocks to Buy Now That the Fed Cut Rates In 2019, it's traded above $44 for an extended period on two occasions and below $33 at two different times. If you bought MU stock at its two highest points in 2019, you'd be sitting on a loss of approximately 9%. As they say, timing is everything. So, now that MU stock has retreated from its late-July highs, investors are likely asking themselves whether it's wise to buy Micron stock on its latest dip. Here are what I see as the pros and cons of buying MU stock around $42. The Pros of Buying MU StockGoldman Sachs analyst Mark Delaney upgraded Micron stock on July 22 from a "neutral" to a "buy" while boosting his 12-month price target on MU by 40% to $56, suggesting that the stock could rise 33% over the next 12 months. As InvestorPlace contributor David Moadel pointed out, Delaney expects NAND prices to improve as excess inventory is depleted faster than expected, due to Toshiba Memory Corporation's (OTCMKTS:TOSBF) fab outage . Delaney thinks market conditions will improve, which means the cut in earnings guidance by MU might be a tad conservative. As a result, MU's Q4 results may beat analysts' average outlook, he contended.As Moadel also stated, despite the decline of MU's earnings in Q3, it still managed to deliver earnings per share of $1.05 on revenue of $4.79 billion. Both were significantly higher than analysts' average estimates. Another positive about buying MU stock at its current prices is the fact that MU continues to use its free cash flow to repurchase its shares. In the first nine months of fiscal 2019, Micron's repurchased 67 million of MU stock at an average price of $39.70 a share. As long as Micron is buying its stock, investors ought to be doing the same. The Cons of Buying MU Stock at Its Current PricesThe biggest reason investors are afraid of purchasing Micron stock at the moment is the fact that the company gets 57% of its revenue from China. As the trade war drags on, the Chinese are going to start making their own DRAM chips to bypass U.S. companies and the American tariffs. InvestorPlace columnist Jamie Johnson recently pointed out that China's Changxin Memory Technologies is investing $8 billion in its DRAM operations,. Johnson think there's a real possibility that other Chinese companies will take similar steps. At some point down the road, China's reduced reliance on American chip makers is going to be bad news for Micron stock. China is not going to become less reliant on products from American chip makers over night. However, China's efforts should make investors question the wisdom of holding MU stock for three to five years. Another reason to avoid MU stock at its current prices is its deteriorating financials. Although Micron's Q3 EPS handily beat analysts' average expectations, it was still 66% lower, excluding some items,, than in the same quarter a year earlier. Furthermore, analysts' estimates for MU's earnings are falling dramatically. At the end of May, analysts' average estimate for Micron's FY20 EPS was $4.51 per share. Now the average EPS estimate is down to $2.49, representing a 45% cut in less than two months. So, is it wise to be running into a building as it's going up in flames? I don't think so. The Bottom Line on MU StockThere's no question that Micron stock has faced some short-term volatility in recent days as a result of the trade dispute. That's probably not going away anytime soon.MU isn't slated to announce its Q4 earnings until Sept. 19, so there's probably plenty of time to consider whether to buy MU stock before the company sheds much more light on its business.I'd try to buy MU stock in the mid-to-high $30s. Buying Micron stock at those prices is meaningfully safer than purchasing it at its current levels. Given the volatility of MU stock, I wouldn't be surprised if investors were given a third chance to buy MU in the $30s before the year is out. I guess we'll see.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Internet Stocks Getting Hammered * 6 Big Growth ETFs to Buy For the Second Half of 2019 * 5 Cheap Stocks to Buy Now That the Fed Cut Rates The post Is Micron Stock Down But Not Out?Â appeared first on InvestorPlace.
As long as there are skittish retail traders who react to each little bit of news, portfolios will churn and newbies will get burned. But you don't have to be a victim of FUD (fear, uncertainty, and doubt) if you're holding Micron (NASDAQ:MU) stock; those who own MU stock have invested in a solid performer with a strong future.Source: Shutterstock I've seen some folks on social media recommend shorting MU stock, and they're all entitled to their opinions. Still, I'm not planning on selling my positions; trade war or no trade war, MU stock is a long-term winner with plenty of gains in its future. Goldman Made the Right Call on MU StockI'm not one to blindly follow the lead of analysts, but sometimes their assessments are spot-on. Such is the case, I believe, with Mark Delaney, a Goldman Sachs analyst who recently upgraded Micron stock from a "neutral" rating to a "buy" rating.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Generation Z Stocks to Buy Long Delaney also increased his price objective on MU stock substantially. from $40 (which I thought was unreasonably low) to a much more optimistic $56. Evidently this analyst is increasingly bullish on semiconductor stocks generally, suggesting that Goldman is taking a more favorable stance on chip makers due to a supply shortage. Delaney wrote:We are now more positive on global memory stocks as we believe that the excess inventory memory companies are carrying will be depleted faster than our previous expectations, primarily in NAND flash as a result of the Toshiba (OTC:TOSBF) Memory Corporation (TMC) fab outage that has disrupted a mid single digit percent of annual industry production (and to a lesser extent incremental capex/utilization cuts). MU's Earnings and Revenues Are Looking SolidIf Micron's fiscal Q3 results are any indication of its health as a company and of the attractiveness of MU stock as an investment, then trade-war worries are nothing more than a distraction for Micron stock.The numbers bear out that thesis, as MU's actual earnings per share came in at $1.05, compared to analysts' average projection of just 79 cents, Its revenue came in at a very impressive $4.79 billion compared to analysts' average expectation of only $4.69 billion.This all took place during some of the most heated flash points of the U.S.-China trade war; bear in mind that Huawei was responsible for 13% of Micron's revenue during the first half of fiscal 2019.According to Micron Chief Financial Officer David Zinsner, Micron "would have come in at the high end of its revenue guidance" if it weren't for the financial burden of the Huawei trade restrictions. Could the Trade War Actually Boost MU Stock?While some social-media gurus have expressed their concern that the ongoing tariff war could take its toll on the MU stock price, Joseph Moore, a Morgan Stanley analyst, actually sees a silver lining to the international wrangling for Micron stock. Increasing his price objective for Micron stock from (a ridiculously low, in my estimation) $31 to a more logical $48, Moore was almost apologetic about his previous pessimism:[G]lobal trade tensions and potential supply risks are driving shorter-term inventory accumulation, which makes our previous underweight rating less actionable.Apparently, Moore doesn't view trade tensions as a reason to run for cover anymore, and I couldn't agree more. He even conceded that (MU's) "earnings are bottoming out" (a rather odd characterization, considering Micron's amazing earnings performance in Q3) and changed his rating on MU stock from "underweight" to "equal-weight" (still not as positive as I'd rate it, but maybe I'm asking for too much from these stodgy big-bank analysts). The Takeaway on Micron StockLike other semiconductor stocks, MU has backtracked somewhat from its recent highs and might even be considered oversold in the short-term. Therefore, I don't see any need to take profits on Micron stock; let the trade war rage on, as MU shareholders will prevail in the end.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Most Shorted Stocks in the Markets Right Now * 7 Charts That Should Concern Marijuana Stock Investors * 8 Monthly Dividend Stocks to Buy for Consistent Income The post Relax and Buy Micron Stock, Despite the Trade-War Turmoil appeared first on InvestorPlace.
Memory stocks have been on the rise since June 25, when chip maker Micron Technology reported better-than-expected earnings results.