39.56 +0.48 (1.23%)
Pre-Market: 8:26AM EDT
|Bid||39.56 x 1400|
|Ask||40.00 x 4000|
|Day's Range||38.98 - 39.38|
|52 Week Range||34.21 - 45.64|
|Beta (3Y Monthly)||1.01|
|PE Ratio (TTM)||17.52|
|Forward Dividend & Yield||1.28 (3.28%)|
|1y Target Est||45.88|
Indian indexes were the best-performing ones in Asia today. The S&P BSE Sensex gained 0.4% to close at 39,592 while the NSE Nifty 50 gained 0.43% to close at 11,848. Out of the 30 stocks in Sensex, 19 gained, and the remaining lost. With 1.64% gains, HDFC Bank (HDB) was one of the top gainers.
(Bloomberg Opinion) -- Ten months ago, I warned that storm clouds were brewing over the global technology industry. The situation today is much worse.Back then, a U.S.-China trade war was more risk than reality, Apple Inc.’s pending iPhone update held promise, and central banks were still in tightening mode. Yet inventories at the end of June 2018 had climbed to the highest since the financial crisis a decade earlier and a sector-wide slowdown was looming.At the time, the Pollyannas were louder than the Chicken Littles. The next iPhone had yet to launch and Christmas shopping season was coming, argued the optimists.Since then, global technology companies have issued loud warnings about lost sales due to U.S. actions against Huawei Technologies Inc. In short, because the U.S. is restricting what can be sold to the Chinese giant, the company and its suppliers are cutting orders. This is causing a ripple effect from semiconductor materials supplier IQE Plc to chip designer Broadcom Inc.But there’s something you need to know about the Huawei effect: It isn’t the cause of this technology recession. If anything, the company is the reason why the situation didn’t worsen earlier. The U.S. war on Huawei propped up the tech sector, notably semiconductors, over the past year.Let me explain. Immediately after the Trump administration in May blacklisted Huawei from buying U.S. components, Bloomberg News reported that the maker of telecommunications equipment and smartphones had been been stockpiling components in anticipation of some kind of action. Chairman Ren Zhengfei saw his own storm brewing and started saving for the rainy day that came on May 17.This tells us that some proportion of global component demand over the past year wasn’t led by end-product sales, but merely by shelf-stocking. More significantly, what revenue component makers did see was probably a false signal, pointing to demand that didn’t exist.These suspicions were confirmed earlier this month when Mark Liu, chairman of made-to-order chipmaker Taiwan Semiconductor Manufacturing Co., told me that he wasn’t sure how much of his company's recent revenue had gone to supplying Huawei’s end-product demand versus building the Chinese company’s inventory. Almost every technology company is a client of TSMC. If Liu, who has the broadest and deepest picture of the global tech sector, can’t make out the difference between demand and inventory build, then you can be sure he’s not alone.There’s also solid data to show the scale of Huawei’s stockpiling. Total inventories climbed 33% last year. Its stash of components – measured as raw materials and works in progress – jumped 76%. At even its most optimistic, there’s no way that Huawei expected 76% revenue growth this year.Which brings us back to the sector as a whole.Here’s an update of the numbers compiled 10 months ago, based on nine leading technology hardware companies and charted by my colleague Elaine He. The results aren’t heartening:With few exceptions, inventories – measured in dollar terms or days outstanding – climbed since June 30, 2018, and were unequivocally higher than two years ago. The revenue slowdowns that have affected every corner of the hardware sector this year make this buildup ominous.Of even greater concern are data pointing to prolonged cash conversion cycles, a measure of how long companies take to turn manufactured goods into money. The only firm to see a solid dip is Apple, and that’s because it tends to generate revenue from customers before having to pay suppliers. Both TSMC and iPhone assembler Hon Hai Precision Industry Co. (aka Foxconn) have said they hold inventory on their books for their key client. Were it not for that fact, Apple’s rising inventory days outstanding would probably be even higher.A major reason for Hon Hai posting weak earnings in the first quarter was inventory provisions. Those can be reversed if products sitting on shelves get sold to consumers, Hon Hai CFO David Huang told me this month. But shipping an already-made device to meet demand means you don’t need to manufacture a new phone, which in turn means no need to buy components from suppliers, and so forth.That’s the situation we’re in now: plenty of inventory, false signals from the Huawei effect, and a pending global economic slowdown that’s likely to suppress demand. If that doesn’t make make you worry about the state of global technology hardware, then I applaud your optimism. To contact the author of this story: Tim Culpan at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- On June 11, for the first time in history, Foxconn Technology Group held an investor relations conference for its flagship company.That’s the good news. The bad news is what the moment portends: The world’s largest electronics manufacturer is about to be left without a CEO.It took founder Terry Gou’s pending departure from Hon Hai Precision Industry Co. to face its stakeholders beyond the legally mandated annual shareholders’ meeting. Gou didn’t even bother to turn up, choosing instead to continue his campaign to become Taiwan’s president.After’s Gou’s departure, which could be as soon as Friday, Foxconn will have a new chairman, and the CEO role will be replaced by a committee of nine. For the past 45 years Gou has been the sole decider and face of the company. So while this major shift in leadership brings sudden and long-overdue transparency, it also leaves his sprawling company – which spans more than a dozen nations, up to one million workers, and an all-star client list – in the hands of a committee and without a chief.I’ve long been skeptical about the company and its future, with or without Gou. As the global tech industry faces both a macroeconomic slowdown and the fallout from U.S.-China trade tensions, Foxconn finds itself caught in the crossfire.The comportment of the company’s new management now allays some of those concerns. At the investor event and a telephone conference that followed, these executives – many of whom had rarely spoken publicly – succinctly fielded questions about the challenges of running Foxconn in the age of President Donald Trump, the possibility of moving iPhone production out of China, and the company’s need to transform. That’s a refreshing change from the waffling, disjointed answers Gou usually gives to the media.Still, this doesn’t mean everything is sorted. The debate over Foxconn’s next chairman, which has been raging for more than a decade, continues. Group CFO Huang Chiu-lian, known as Money Mama, was among the names tipped to take control. Heads of various divisions are also being considered.It’s my belief that Young Liu, currently head of Foxconn’s chip division, will get that job. (Huang isn’t in the running since she won’t be on the new board). Getting the chairmanship, though, doesn’t mean taking Foxconn’s Iron Throne. Rather, this management-by-committee strategy sets the company up for possible infighting among various division chiefs, some of whom are part of that inner circle.Any executive decision inevitably becomes a question of resource allocation. Since Foxconn is notoriously tight-fisted, divisions will likely need to compete with each other or engage in back-room horse trading to get what they want.If the collegiality on display at the new team’s first public outing dissolves, then the executive lineup is likely to become a war of attrition. When Gou floated the idea of retirement a dozen years ago, he talked about winnowing his list down from more than 35 to less than 10 possible successors. But he’s never groomed anyone, unlike compatriot Morris Chang, who spent considerable time training up his successors for the company he founded and chaired, Taiwan Semiconductor Manufacturing Co. More than a few people who follow Foxconn have told me they think that most lieutenants will retire pretty quickly if they don’t get clear control over the company once Gou steps down. As some depart, competition to take the reins may ensue. My fear is that a series of departures and jostling will weaken Foxconn just when it needs stability and a single leader. Once that shakes out, any eventual winner may find that there’s no throne to take, let alone dragons to fight with.To contact the author of this story: Tim Culpan at email@example.comTo contact the editor responsible for this story: Rachel Rosenthal at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Just like some of the other Asian indexes, Indian indexes closed almost flat today. The S&P BSE Sensex lost four basis points, while the NSE Nifty 50 gained seven basis points.
SHANGHAI/HONG KONG (Reuters) - Since the U.S. government put Huawei Technologies Co Ltd on a trade blacklist, effectively banning American firms from doing business with it, China's leaders have spoken boldly about achieving self-sufficiency in the critical semiconductor business. The prospectuses of Chinese chip companies preparing to list on a new tech-focussed stock exchange are blunt, characterizing the domestic industry as "relatively backward", lacking in talent and requiring "a long time to catch up". Chinese chip engineers tell tales of local manufacturing that just is not up to snuff, while analysts point out the many areas where China remains reliant on technology from the United States, Taiwan, South Korea, Japan and Europe, with some questioning whether government policies are in the right place.
Asian Markets Turn Bearish as China Says It's Not Afraid to Fight(Continued from Prior Part)Indian indexesAfter rising yesterday, both the key Indian indexes fell today. The S&P BSE Sensex retreated by 0.48% to end the day at 39,756.81. The
Keywise Capital Management is a Hong Kong-based hedge fund that invests in public equity companies in Greater China markets, mostly China, Taiwan, Hong Kong, Singapore, and Chinese ADRs in the US. The fund focuses on under-researched public companies of mid-market caps. In addition to its headquarters in Hong Kong, this asset management firm provides another […]
Investing in small cap stocks has historically been a way to outperform the market, as small cap companies typically grow faster on average than the blue chips. That outperformance comes with a price, however, as there are occasional periods of higher volatility. The last 8 months is one of those periods, as the Russell 2000 […]
According to the GuruFocus All-In-One Screener, the following companies have grown their book value per share (BV/S) over the past decade. BV/S is calculated as total equity minus preferred stock, divided by shares outstanding. Since the BV/S may not reflect the company's true value, some investors check the tangible book value to confirm their investment ideas.
Huawei Technologies Co Ltd has cut or canceled orders to major suppliers of components for its smartphones and telecom equipment following its U.S. blacklisting, the Nikkei reported, claims that were rejected by the Chinese firm. Taiwan Semiconductor Manufacturing Co Ltd (TSMC) confirmed that orders from Huawei have declined after U.S. President Donald Trump imposed a ban on the Chinese company on national security grounds, according to the report https://asia.nikkei.com/Spotlight/Huawei-crackdown/Huawei-cuts-orders-to-key-suppliers-after-US-blacklisting.
The Zacks Analyst Blog Highlights: Fujifilm, NXP Semiconductor, Taiwan Semiconductor Manufacturing, XILINX and Advanced Micro Devices
Trade wars are unhealthy for economies and other living things. While trade between the U.S. and China is a tiny part of global trade, JPMorgan Chase (NYSE:JPM) says the trade war is putting a "cap" on the global economy. CEO Jamie Dimon says escalating trade tensions could end the recovery. Half the globe's growth comes from trade.Source: Maher Najm via FlickrIf nothing else, the trade war forces people to choose sides.TV analyst Jim Cramer has become a "trade hawk," a stance that lets the administration call those who favor growth "trade doves."InvestorPlace - Stock Market News, Stock Advice & Trading TipsAlibaba Group Holding (NASDAQ:BABA) executive chairman Jack Ma is talking up a listing in Hong Kong, to make his company more independent of U.S. investment.In an era of stupid policies, this is the biggest stupid of all. Trade ReciprocityThe trade war is partly based on a lie. The lie is that the trade deficit is money "lost" to a trading partner. In fact, it's a cost of goods sold, recouped in the form of lower prices, not just for toys and diapers but for finished goods the U.S. can export. * 7 Stocks to Buy for June The trade war is thus largely based on fear.The fear is that China is taking the future, that China will dominate the world unless our trade deficit with it is reduced. Ultimately the argument is that trade is war by other means.China's "belt and road" initiative, an enormous infrastructure project of road and port improvements around the world, funded by Chinese loans, is called a "debt trap," a way for China to gain control of remote economies.Mainly, the U.S. relationship with China is seen as a win-lose proposition. If they rise, we fall, and vice versa.This is the biggest lie of all. What the U.S. WantsThe stated goal of U.S. policymakers is equal treatment for U.S. technology. American internet companies are kept out of China and every niche has a Chinese imitator, because China wants absolute control over what its people say and see. One in five U.S. companies claim China has stolen its intellectual property. Chinese products are accused of being used to spy, which is why the U.S. is cracking down on Huawei.Unfortunately, that war has already been lost. China is integral to the global supply chain, especially the U.S. supply chain. Every major U.S. tech manufacturer has close ties to China. That's because even educated Chinese labor is cheap and abundant.Every escalation in war rhetoric hits companies like Apple (NASDAQ:AAPL) hard. Since things heated up in April, Apple is down 12%. Nvidia (NASDAQ:NVDA) is down nearly 30% from its April highs, a loss of around $20 billion. The Bottom LineThis administration doesn't care who it hurts in the pursuit of power, except Wall Street.If the trade war starts costing Wall Street big money, and moneymen stop listening to trade hawks in the name of profit, Trump will turn around as he did early this year, after the fall's tech wreck.It's all a game, a way of saying that America is still King of the World. Make America seem great again.But America isn't King of the World, nor should it be. A win-win deal can be made, and we should make it. We will, once the market tells this administration that it must, or we may see business go Democratic in 2020.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AAPL, NVDA and JPM. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for June * 7 Stocks to Buy From One of America's Best Pension Funds * 4 Consumer Staples Stocks for Both Income and Growth Compare Brokers The post The China Trade War Is Unhealthy appeared first on InvestorPlace.
The elation they felt in late April when TSMC climbed to a record has turned to disappointment as it is now poised for its worst month since 2008. The slump by Taiwan’s biggest stock is dragging down Taiwan equities. Foreign investors have sold a net $3.5 billion of the island’s shares so far this month, the most among Asian markets tracked by Bloomberg.
Likely the biggest reason AMD's shares are up over almost 12% as of the time of this article: AMD unveiled third-gen mid-range and high-end Ryzen desktop CPUs that appear to match up very well against comparable Intel CPUs on a price/performance basis. In a keynote demo, AMD showed the Ryzen 7 3700X, an 8-core, third-gen CPU that will sell for $329, handily outperforming Intel's Core i9-9900K -- it launched last fall, sells for $488 and relies on a 14nm Intel manufacturing process node that's getting long in the tooth -- when running the popular Cinebench R20 content-rendering benchmark. It also showed the Ryzen 7 3800X, a more powerful sibling that will sell for $399, holding even with the 9900K when playing battle royale game PUBG (gaming has been a strong point for high-end Intel CPUs).
If anything, the move underlines a simple fact: China currently lacks a viable and international semiconductor industry. This trade spat highlights the country’s deficiencies in technology. On May 24 the Shanghai-based company announced plans to take its ADRs off the NYSE because of low trading volume and the administrative costs of keeping them there.
This week, TSMC, which is believed to have over half the chip contract manufacturing (foundry) market, said it has started volume production for the second manufacturing process to rely on its 7-nanometer (7nm) process node. There's a good chance that Apple is using it to produce the A13 system-on-chip (SoC) expected to power this year's iPhones.
Editor's Note: This story was corrected on May 26. 2019.General Electric (NYSE:GE). JC Penney (NYSE:JCP). US Steel (NYSE:X). In investing, and business, a good name and a long history are worth precisely nothing. This is especially true in technology, where once-great names like Silicon Graphics, Wang and Novell never got a chance to grow old.Source: Shutterstock But Intel (NASDAQ:INTC)? Intel, the home of Moore's Law, whose semiconductor chips practically invented the world we live in? Intel?InvestorPlace - Stock Market News, Stock Advice & Trading TipsYes, Intel.In the last month, Intel has lost over 23% of its value. That's over $45 billion whacked off its market cap. At about $43.60, it's selling for just 10 times last year's earnings, just three times last year's sales. Is it possible that Intel could join these other names on the scrap heap of business history? Self-Induced Troubles for Intel StockIt is possible.Intel has been drifting for years. I worked on a project during the last decade about their problems with mobile chip technology. They're still not fixed. CEO Bob Swan is just the seventh leader in Intel's history, the second without a technology background. Today only two members of the company's nine-member board are technologists. * 5 Safe Stocks to Buy This Summer As Adam Savage once said, "Well, there's your problem." Intel has lost its technology edge.Intel stock is four years late with its 10 nm manufacturing process. Rival Taiwan Semiconductor (NYSE:TSM) is already rolling out 7 nm chips.Advanced Micro Devices (NASDAQ:AMD), once Intel's baby brother, has lapped it in this decade. Since the start of 2016, AMD's stock is up over 800%. Intel is up 29% in that period. The average Nasdaq gain has been 53%.Intel stock has been beaten in modem chips by Qualcomm (NASDAQ:QCOM), beaten in memory chips by Micron Technologies (NASDAQ:MU) and beaten in graphics by Nvidia (NASDAQ:NVDA).AMD is now beating it in microprocessors.Intel's chips have been hit repeatedly with security flaws, and the fixes cost processing speed. AMD seems immune to the latest vulnerabilities.Intel's low prices and high volumes mean it has reclaimed its lead among semiconductor makers from Samsung Electronics (OTCMKTS:SSNLF). But that's a function of the memory chip business, which will turn around with the rest of the market.Intel is down to $3 billion in cash, down from $15 billion at the end of 2015. Long-term debt is over $25 billion, above the level listed on the balance sheet for common stock equity. Swan's WayBob Swan didn't start this fire.Former CEO Brian Krzanich tossed out rivals like a Game of Thrones character but was undone by his own sex life. Krzanich left the executive cupboard bare. Intel was unable to recruit any of the names he dumped for its top slot, settling on Swan the way Manchester United did on Ole Gunnar-Solskjaer.Swan seemed to be doing OK as interim boss for Intel stock, bringing in an outside perspective his predecessors did not have, but since January the problems have piled up for the former eBay (NASDAQ:EBAY) executive, who started his career at General Electric. Swan has struck an attitude of humility but he's still losing top tech people, especially top women, like cloud boss Raejeanne Skillern, now at Flex (NASDAQ:FLEX). The Bottom LineI must join those analysts who now wonder if Bob Swan has the technical chops to turn Intel around. Swan's chief technology officer, Mike Mayberry, is an Intel lifer from the production side of the house. He's not a visionary.Intel needs a visionary. Technology companies are natural kingdoms. They can't be led by committees. They require strong leadership of the kind Intel rivals have. But Andy Grove isn't walking through that door. Gordon Moore is still around, but he's 90.Intel stock is continuing to drift toward the rocks. Investors have finally gotten the scent. While I hope I'm wrong, the company's worst days may be ahead of it.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post Intel Stock Could Still Have a Long Way to Fall appeared first on InvestorPlace.
Chinese technology giant Huawei has enough inventory to sustain its smartphone and 5G networking equipment business for most of the rest of the year, according to brokerage and investment firm CLSA.