By GuruFocus, Contributor Hedge fund Joho Capital was founded by Robert Karr. He is one of the Tiger Cubs, the hedge fund managers who learned from the legendary Julian Robertson. Robert Karr tends to hold very concentrated positions in the area of new technologies. His stock picks performed the best among our gurus, according to the Scoreboard of Gurus.
Tag Archives: Micron Technology
Profit From These Double-Digit Growers
By Selena Maranjian, The Motley Fool
Filed under: Investing
Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you’d like to add some big, technology-heavy stocks to your portfolio, the Direxion Nasdaq-100 Equal Weight Index ETF could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.
The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The Nasdaq-100 ETF‘s expense ratio — its annual fee — is a relatively low 0.35%. The fund is very small, too, so if you’re thinking of buying, beware of possibly large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.
This ETF is too new to have a sufficient track record to assess. As with most investments, of course, we can’t expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.
Why Nasdaq-100 and equal-weighting?
Nasdaq-100 stocks offer the benefits of large-cap status, which can provide a bit more stability than small caps, and they’re often in rapidly changing and growing industries, as well. Equal weighting is a sensible way to structure an index, as it doesn’t let the biggest companies overly influence the index’s returns, when the smaller ones, which might be able to grow faster, are left less powerful.
More than a handful of big, technology-heavy companies had strong performances over the past year. Seagate Technology surged 52%. Despite that, with a P/E ratio recently below 5, it’s still a seemingly cheap stock. It’s been whacked by the decline of the PC, but there’s still hope as cloud computing takes off and requires storage, and if solid-state drives grow in demand. Some don’t like the prospects for Seagate’s main drive business, though, and think Seagate is cheap, but not that attractive.
Vertex Pharmaceuticals jumped 48%, as it looks to expand the application of its promising cystic fibrosis drug, Kalydeco. Vertex recently entered into a deal with Bristol-Myers Squibb to pursue a treatment for Hepatitis C.
Micron Technology gained 41%, with bulls seeing growth in tablets and smartphones driving demand for memory chips. The stock soared to a 52-week high recently, when Micron posted its second-quarter earnings. Bulls liked the report, seeing lower costs and rising margins hinting at a return to profitability soon. Micron’s purchase of Japanese manufacturer Elpida seems promising, boosting its capacity and its relationship with Apple. Bears worry about Micron losing market share, though.
Other companies didn’t do as well last year, but could see their fortunes change in the coming years. Nuance Communications , a speech-recognition software specialist, slid 10%. Many had expected the health-care field to offer great new opportunity for the company, but now, some worry about competitors
From: http://www.dailyfinance.com/2013/04/11/profit-from-these-double-digit-growers/
The 3 Best-Performing Nasdaq-100 Stocks in the First Quarter
By Sean Williams, The Motley Fool
Filed under: Investing
It was generally a great quarter for U.S. indexes all the way around, with the Dow Jones Industrial Average and S&P 500 all rising to the occasion and eclipsing their all-time highs. The same can’t quite be said for the tech-heavy Nasdaq-100, which rose just 5.9% during the quarter. Don’t get me wrong — this is still an impressive gain. However, the continued commoditization of technology products dragged down results for numerous technology bellwethers.
Despite underperforming both the Dow Jones and S&P 500, three companies shone to the upside during the quarter.
Micron Technology +57.3%
Memory-chip maker Micron sneaked in as the fifth-best performer in the S&P 500, but it snagged the title as top dog within the Nasdaq-100 thanks to the beautiful combination of decreasing production costs and rising gross margins. Micron’s second-quarter results highlighted this outperformance, as its revenue flew by Wall Street’s estimates by $160 million despite a worse-than-expected loss of $0.28 per share.
Celgene +47.7%
Biotechnology company Celgene delivered an exceptional quarter for investors, rising nearly 48% after outlining a plan in early January at the J.P. Morgan Healthcare Conference that could have it doubling its revenue and tripling its profits organically by 2017. Celgene has multiple growth drivers in Revlimed for multiple myeloma and Abraxane, which continues to gain additional approvals in various cancer treatments. In addition, Celgene received FDA approval for its advanced multiple myeloma drug Pomalyst during the first quarter.
Dell +42.2%
PC-maker Dell’s gains come courtesy of a buyout offer to go private from CEO Michael Dell and Silver Lake Partners, which offered $13.65 per share for the company in February. After weeks of huffing and puffing from activist investors unhappy with the buyout price, Blackstone Group and Icahn Enterprises one week ago offered competing bids that could take all, or parts, of the company private for a value ranging from at least $14.25 for Blackstone, to as high as $15 for Icahn Enterprises bid. As a shareholder in Dell, I encourage you to read my more detailed analysis of the three-way battle for this transformative company, and why the Blackstone offer is a superior bid.
Which company has the best shot of outperforming in Q2?
I’m a current shareholder in Dell, but I’m also a realist who understands that the chance that any competing bids will send shares higher is pretty low. With its PC business in decline and its networking business showing double-digit gains, cash flow growth from here on out should remain a wash. That will make raising additional cash beyond the current offers difficult, which leads me to believe Dell will be fairly flat in the upcoming quarter.
Micron Technology, as well, isn’t a company I’d expect much from in the upcoming quarter. Memory-chip makers are the type of company you buy when no one wants them and you sell when the Wall Street upgrades start rolling in. With gross margin expanding …read more
Source: FULL ARTICLE at DailyFinance
Which Top 5 S&P 500 Performer Has the Best Shot at Outperforming in Q2
By Sean Williams, The Motley Fool
Filed under: Investing
With investors enjoying a rare three-day weekend thanks to Good Friday, and basking in a fresh all-time closing high for the S&P 500, I thought it important to take the time to review the index’s top five performers in the first-quarter to see if they offer any clues as to which may roll its gains into the second quarter.
Netflix + 104.4%
Netflix was the best performer within the S&P 500 by a mile. Netflix more than doubled up for shareholders after showing the benefits of content streaming, both domestically, and abroad. Despite seeing a continued slowdown in its traditional DVD business, Netflix added 2 million streaming customers domestically, and an additional 1.8 million abroad. Furthermore, streaming gross margin came in higher than anyone had expected, resulting in a $0.13 fourth-quarter profit, when Wall Street had been anticipating a $0.13 loss per share.
Best Buy + 88.4% (dividend-adjusted)
Big-box retailer Best Buy turned in a phenomenal performance in the first-quarter for a company that many had left for dead. Best Buy‘s turnaround strategy – which involves downsizing its stores, focusing on mobile products like smartphones and tablets, incentivizing its employees with sales bonuses and, most importantly, matching competitor’s prices — appears to be working like a charm. The company left its dividend untouched at $0.17 per quarter, and reversed a string of same-store sales declines by posting a 0.9% same-store sales increase over the year-ago period.
Hewlett-Packard + 68.4% (dividend-adjusted)
Like Best Buy, HP was left for dead by shareholders at the beginning of the year after unveiling sweeping reforms and job cut plans last year. However, HP put some of those dissenters on the back burner after reporting better-than-expected first-quarter earnings in February. HP‘s revenue of $28.4 billion, and its EPS forecast for 2013 of $2.30-$2.50, was markedly higher than the $27.8 billion that the Street had expected, and the $2.10-$2.30 that HP‘s management had previous projected.
H&R Block + 59.5% (dividend-adjusted)
Tax preparation service H&R Block delivered a nearly 60% gain in the first-quarter to shareholders despite just weeks ago running into a snafu with its at-home tax preparation software that modestly delayed up to 660,000 returns. H&R Block, which derives nearly all of its profits between the end of January and April 15, anticipates filings will be up by 1%-2% this year, and CEO Bill Cobb noted three weeks ago that he felt H&R Block was outperforming its competitors.
Micron Technology + 57.3%
Memory chip maker Micron snagged the fifth-best performance within the S&P 500 this quarter in anticipation of stronger margins and decreasing costs, which should help its bottom line performance. Handily topping Wall Street‘s revenue expectations in its second-quarter results, Micron has benefited from robust smartphone and tablet sales, as well as demand for data center infrastructure.
Source: Finviz, Yahoo! Finance.
Which of these five can head higher in Q2?
It really …read more
Source: FULL ARTICLE at DailyFinance
Why Micron Technology Is Poised to Keep Poppin'
By Brian D. Pacampara, The Motley Fool
Filed under: Investing
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, memory chip manufacturer Micron Technology has earned a respected four-star ranking.
With that in mind, let’s take a closer look at Micron and see what CAPS investors are saying about the stock right now.
Micron facts
|
Headquarters (founded) |
Boise, Idaho (1978) |
|
Market Cap |
$10.0 billion |
|
Industry |
Semiconductors |
|
Trailing-12-Month Revenue |
$8.1 billion |
|
Management |
CEO Mark Durcan (since 2012) CFO Ronald Foster (since 2008) |
|
Return on Equity (average, past 3 years) |
(0.1%) |
|
Cash/Debt |
$2.2 billion / $3.7 billion |
|
Competitors |
Samsung Electronics SanDisk |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 90% of the 1,266 members who have rated Micron believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those Fools, drewvogel, succinctly summed up the Micron bull case for our community:
Spot prices on DRAM have been increasing, but in the latest conference call [Micron] said their DRAM bit volume increased while their average selling price declined. … This is likely due to their contract prices lagging spot prices. The next quarter should include some of those spot price increases in the DRAM market. In addition to the improving DRAM conditions, the NAND prices are rising due to a shortage of chips combined with healthy demand as individuals and enterprises alike are moving to SSDs instead of replacing PCs. The price has a good bit of the Elpida acquisition baked in. Price target: $14.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Micron may not be your top choice.
We’ve found another growth play we are incredibly excited about — excited enough to dub it “The Only Stock You Need to Profit from the NEW Technology Revolution.” We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won’t be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why Micron Technology Is Poised to Keep Poppin’ originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure …read more
Source: FULL ARTICLE at DailyFinance
Make Money in Booming Markets With Volatile Stocks
By Selena Maranjian, The Motley Fool
Filed under: Investing
Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you’d like to add some volatile stocks to your portfolio, the PowerShares S&P 500 High Beta ETF could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.
The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The PowerShares ETF‘s expense ratio — its annual fee — is a relatively low 0.25%. The fund is on the small side, too, so if you’re thinking of buying, beware of possibly large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.
This ETF is too young to have a sufficient track record to assess. (It did underperform the S&P 500 over the past year, and beat it in 2012.) As with most investments, of course, we can’t expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.
Why high volatility?
One reason to be drawn to volatile stocks is that they tend to do especially well in bull markets — and our global economy is starting to pick up steam, with the stock market rising in recent years. Still, more than recommending that you seek out high-volatility stocks, I’d urge you to just not discount them. Some folks fear volatility, but remember that for most of us, it’s long-term performance that matters most, not short-term zigs and zags.
More than a handful of high-volatility stocks had strong performances over the past year. Micron Technology , for example, surged 20%, with bulls seeing growth in tablets and smartphones driving demand for memory chips. The stock soared to a 52-week high recently when Micron posted its second-quarter earnings and lower costs and rising margins hinted of a return to profitability soon. Micron’s purchase of Japanese manufacturer Elpida seems promising, boosting its capacity and its relationship with Apple.
Genworth Financial gained 16%, in part on the recovering housing market, which will boost its mortgage insurance business, even as it distances itself from that. (A suggestion in Barron’s that the stock is cheap also helped.) Genworth’s long-term care insurance is also not a great profit driver lately, despite some competitors having exited that market. In addition, the company has warned that if interest rates remain low in the coming years, that will reduce profitability and hurt its turnaround efforts.
Other companies didn’t do as well last year, but could see their fortunes change in the coming years. JDS Uniphase sank 3%, despite blowing past earnings estimates in its second quarter. The telecom equipment maker has been hurt by the world’s sluggish economy, but with smartphones and tablets proliferating rapidly and telecom …read more
Source: FULL ARTICLE at DailyFinance
Whoa! These Stocks Outpaced the Dow
By Rich Duprey, The Motley Fool
Filed under: Investing
The Dow Jones Industrial Average rose by 90 points on Friday — the exact amount it fell the day before — on hopes that a deal between the European Union and Cyprus would get hammered out that wouldn’t lead to a messy divorce. I don’t find much comfort in the agreement that did get worked out over the weekend, of taking the cash out of individual depositors’ accounts because now every country with a shaky financial system — and that seemingly includes most of Europe — will have to worry their funds could be subject to a seizure as well and they could start a run on the banks. I know I wouldn’t be leaving my money in one.
The three stocks below however were far removed from the scene of international intrigue rising on their own merits. Yet resist the urge to high-five everyone in the cubicles next to you. Smart investors won’t celebrate until they know why their stock surged, because without a fundamental basis for the bounce, these stocks could just as quickly make the return trip down.
|
Company |
% Gain |
|---|---|
|
Halozyme Therapeutics |
30.9% |
|
Micron Technology |
10.7% |
|
Nike |
11.1% |
Advise and consent
It’s not quite the same as the European medical regulators themselves giving Halozyme Therapeutics its stamp of approval, but their advisory board’s endorsement of HyQvia was enough to send the stock soaring. That’s no guarantee of full approval and it should be remembered that last year the FDA rejected the drug.
HyQvia — which was rebranded from its previous HyQ moniker — is a combination of Baxter‘s Gammagard and Halozyme’s rHuPH20, which allows the drug to be injected subcutaneously, and the FDA worried about possible effects it might create on reproduction, development and fertility. The agency went so far as to request patients no longer be dosed with rHuPH20 in the Baxter HyQ program until they’re given additional preclinical data sufficient to address their concerns. The FDA is also closely monitoring Halozyme’s collaboration with ViroPharma on Cinryze.
Halozyme’s rHuPH20 has a lot of potential, and despite the setbacks, it’s still attracting partners as evidence by the deal it signed with Pfizer in December. But like the relationship between the FDA and its advisory panels, there are no requirements the EMA follow the endorsement Halozyme and Baxter just received, and this could mean the stock could plunge once again.
All good things must end
Despite wider-than-anticipated losses in the quarter, sales at Micron Technology jumped 3% to $2.1 billion — well above the $1.9 billion Wall Street expected — and analysts now believe the memory chipmaker will be profitable by the end of 2013.
Because of lower production costs and higher memory chip shipments (partially offset by lower selling prices), Micron recorded much better than expected margins. Gross margins jumped to 17.6% in the quarter, up from 10.5% a year ago, while …read more
Source: FULL ARTICLE at DailyFinance
Micron Earnings Confirm Improving Memory Market
Quick Take On account of strong growth in NAND and DRAM, Micron’s Q1 2013 revenue and gross margins increased by 13% and 6% q-o-q, respectively After a 8% decline in calendar year 2012 revenues, it looks like the memory market fundamentals are improving Micron’s DRAM revenues increased by ~25% on account of 38% higher bit sales, which were partially offset by a 10% sequential decrease in DRAM prices With a higher proportion of demand coming from alternate markets (besides PC), the average DRAM selling price can increase by a few percentage points; DRAM for PCs have lower per bit selling prices Micron generates <10% of its revenue from mobile DRAM, which can increase after Elpida’s acquisition and is one of the fastest growing market for DRAM products Micron's NAND revenue grew by 8% sequentially and can increase further with higher demand for SSDs and mobile devices though a shift to high density product mix will lower selling prices Micron Technology, one of the leading manufacturers of memory products (DRAM, NAND & NOR), witnessed an 8% decline in revenues in calender year 2012 on account of persistent weakness in the memory market. The memory market is highly cyclical in nature and is currently seeing excess supply. The slow demand on account of macro headwinds combined with intense competition further put pressure on selling prices which in turn impacted Micron’s bottom line. However, judging by Micron’s Q2 2013 earnings release on March 21, it looks like the memory market fundamentals are improving. …read more
Source: FULL ARTICLE at Forbes Latest
Why Micron Technology Shares Jumped
By Sean Williams, The Motley Fool
Filed under: Investing
Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.
What: Shares of Micron Technology , a memory chip manufacturer in the semiconductor sector, roared higher by as much as 12% after reporting its second-quarter earnings results.
So what: For the quarter, Micron reported a 3% increase in total revenue, to $2.08 billion, but saw its loss widen to $286 million, or $0.28, from $282 million in the year-ago period. Wall Street had been expecting a loss of just $0.20 per share, but the $2.08 billion in sales was markedly higher than the $1.92 billion consensus. What really has investors excited is the combination of lower manufacturing costs and improving margins that portend profitability could be right around the corner. It was this that prompted research firm Credit Suisse to boost its price target on Micron from $8, to $14, as it sees favorable memory supply keeping Micron’s margins and memory prices up.
Now what: If you don’t know a thing about cyclical businesses, just buy a memory chip producer and hang on for a few years, and you’ll be an expert in no time. The time to buy a company like Micron is when no one wants to own a memory chip producer, and the time to sell is shortly after they become profitable and supply becomes favorable. We’re probably getting toward the upper-end of its cyclical trading range; so, while I still favor some modest additional upside in the company, I’m not expecting a blockbuster return.
Craving more input? Start by adding Micron Technology to your free and personalized Watchlist, so you can keep up on the latest news with the company.
The amount of data we store every year is growing by a mind-boggling 60% annually! To make sense of this trend and pick out a winner, The Motley Fool has compiled a new report called, “The Only Stock You Need to Profit From the NEW Technology Revolution.” The report highlights a company that has gained 300% since first recommended by Fool analysts, but still has plenty of room left to run. To get instant access to the name of this company transforming the IT industry, click here — it’s free.
The article Why Micron Technology Shares Jumped originally appeared on Fool.com.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering …read more
Source: FULL ARTICLE at DailyFinance
Why the Dow's Ignoring the Naysayers Again This Morning
By Dan Caplinger, The Motley Fool
Filed under: Investing
For U.S. investors, international crises tend to be short-term events that have little long-term impact. That seems to be the direction the banking crisis in Cyprus is taking: Optimism that banks and government officials will successfully resolve the immediate problems before conditions worsen has helped push stocks higher around the world. As of 10:50 a.m. EDT, the Dow Jones Industrials are up 64 points, or 0.45%, erasing most of yesterday’s losses as investors instead focus on the recent positive news on the U.S. economic front.
Among Dow stocks, General Electric is up just a few cents, but a report from The Wall Street Journal revealed an interesting story involving the company’s GE Capital division. Apparently, GE Capital has been in talks with Dell to buy the computer maker’s financial-services business. Working alongside Blackstone, GE Capital is reportedly trying to take advantage of the turmoil resulting from Dell’s attempt to go private in order to snatch up lucrative assets opportunistically. The mechanics of the deal might be difficult, but such a move could greatly boost what has been a shrinking part of GE‘s overall business.
Outside the Dow, BP rose 2.5% after announcing that it would initiate a big buyback of its stock. Having sold off its 50% interest in its TNK-BP venture to Russian oil company Rosneft, BP expects to keep about $4.5 billion of the proceeds to pay down debt, but it should be able to return the rest to shareholders over the next year to 18 months. BP will also own nearly 20% of Rosneft, giving it continuing exposure to the vast opportunities in Russia.
Finally, Micron Technology has soared 10.5% on positive earnings news. Although the company posted a loss for the quarter, highly optimistic comments about rising prices for both DRAM and NAND memory chips point to better times for Micron, and the memory maker has also cut costs to improve margins. Given the up-and-down cycles in the industry, it’ll be important for Micron to take maximum advantage of the good times while they last.
GE survived the financial crisis by scaling back its GE Capital division in favor of making strategic bets in energy. But given the speculation about Dell’s financial business, where is General Electric really headed with its business strategy? Find out in our premium research report on the conglomerate, in which our industrials analyst breaks down GE‘s multiple businesses and gives reasons to buy or sell GE today. To get started, click here now.
var FoolAnalyticsData = FoolAnalyticsData || []; …read more
Source: FULL ARTICLE at DailyFinance
Dow May Rise Despite Cyprus Uncertainty
By Roland Head, The Motley Fool
Filed under: Investing
LONDON — Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average may open 0.11% higher this morning, while the S&P 500 may open up by 0.26%. The CNN Fear & Greed Index has continued its recent retreat, closing at 67 (greed) last night, down from its previous close of 73.
Europe could be in the spotlight once more today as events in Cyprus enter a critical stage. Cypriot politicians have drawn up a wide-ranging set of capital controls that they hope to vote into law later today. The controls are part of a nine-bill package aimed at restructuring the country’s Laiki Bank and finding a bailout solution that will be acceptable to the European Union and the International Monetary Fund following Russia‘s refusal to provide further assistance. A final agreement is unlikely before the weekend but is needed by Monday, when the European Central Bank has threatened to withdraw liquidity support from Cypriot banks.
Elsewhere in Europe, Germany’s Ifo Business Climate Index dropped for the first time in five months from 107.4 in February to 106.7 in March. European markets were mixed through the morning, but there were no serious sell-offs. In London, the FTSE 100 was up by 0.31% at 7:25 a.m. EDT.
There are no major economic reports scheduled for release in the U.S. this morning, but companies due to report quarterly earnings before the opening bell include Tiffany, which is expected to report fourth-quarter earnings of $1.36 per share on revenue of $1.25 billion, and Darden Restaurants, which is expected to report earnings of just $0.01 per share for the third quarter. BlackBerry will also be in the spotlight today as it launches its new Z10 smartphone in the U.S.
Nike stock could be actively traded this morning after the sportswear firm reported a 55% rise in quarterly revenue after the close last night. Quarterly earnings rose to $0.73 per share compared with $0.61 per share for the same period last year, significantly ahead of analysts’ consensus forecasts for earnings of $0.67 per share. Nike stock was up 8% in premarket trading this morning, while Micron Technology rose by 6.4% in early trading after the company beat estimates with second-quarter sales of $2.08 billion.
Finally, let’s not forget that the Dow’s daily movements can add up to some serious long-term gains. Indeed, Warren Buffett recently wrote, “The Dow advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions.” If you, like Buffett, are convinced of the long-term power of the Dow, you should read “5 Stocks To Retire On.” Your long-term wealth could be transformed, even in this uncertain economy. Simply click here now to download this free, no-obligation report.
The article Dow May Rise Despite Cyprus Uncertainty originally appeared on Fool.com.
Roland Head has no position …read more
Source: FULL ARTICLE at DailyFinance
Micron Q2 Beats on Top Line, Misses on Net Loss
By Eric Volkman, The Motley Fool
Filed under: Investing
Micron Technology results are in for its fiscal Q2 2013. For the quarter, net sales amounted to $2.1 billion, up modestly from the $2.0 billion in the same period the previous year. Net loss, however, deepened, to $286 million ($0.28 per diluted share) from Q2 2012’s shortfall of $282 million ($0.29).
Analysts had been projecting net sales of of $1.9 billion, and a per-share loss of only $0.20.
Micron pointed out that the quarter were affected by $120 million in charges related to foreign currency hedging activities, as well as a $62 million loss connected with the expected sale of a wafer fabrication facility in Italy.
The article Micron Q2 Beats on Top Line, Misses on Net Loss originally appeared on Fool.com.
Fool contributor Eric Volkman has no position in Micron Technology. The Motley Fool has no position in Micron Technology. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
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Acacia Subsidiaries Enter into Settlement Agreement with Micron
By Business Wirevia The Motley Fool
Filed under: Investing
Acacia Subsidiaries Enter into Settlement Agreement with Micron
NEWPORT BEACH, Calif.–(BUSINESS WIRE)– Acacia Research Corporation (NAS: ACTG) announced today that its Advanced Data Access LLC subsidiary, its Smart Memory Solutions LLC subsidiary, and its Semiconductor Technology LLC subsidiary have entered into a settlement and license agreement with Micron Technology, Inc., Micron Semiconductor Products, Inc., and Micron Technology Texas, LLC. This agreement resolves litigation that was pending in the United States District Court for the Eastern District of Texas and the United States District Court for the District of Delaware.
ABOUT ACACIA RESEARCH CORPORATION
Acacia Research Corporation‘s subsidiaries partner with inventors and patent owners, license the patents to corporate users, and share the revenue. Acacia Research Corporation‘s subsidiaries control over 250 patent portfolios, covering technologies used in a wide variety of industries.
Information about Acacia Research Corporation and its subsidiaries is available at www.acaciaresearchgroup.com and www.acaciaresearch.com.
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This news release may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including the economic slowdown affecting technology companies, our ability to successfully develop products, rapid technological change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. Our Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Forms 8-K and 8-K/A, and other SEC filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
Acacia Research Corporation<br …read more
Source: FULL ARTICLE at DailyFinance
Micron Earnings: An Early Look
By Dan Caplinger, The Motley Fool
Filed under: Investing
Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Micron Technology is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.
Micron makes memory chips, which has exposed the company to a rocky market for years as the industry has gone through severe gluts that pushed prices down sharply. Lately, though, investors have been hopeful that a turnaround is finally taking shape. Let’s take an early look at what’s been happening with Micron over the past quarter and what we’re likely to see in its quarterly report on Thursday.
Stats on Micron
|
Analyst EPS Estimate |
($0.20) |
|
Year-Ago EPS |
($0.29) |
|
Revenue Estimate |
$1.91 billion |
|
Change From Year-Ago Revenue |
(4.7%) |
|
Earnings Beats in Past 4 Quarters |
0 |
Source: Yahoo! Finance.
Will Micron help investors remember the good times this quarter?
Over the past few months, analysts have gotten a lot more worried about Micron. They’ve nearly doubled their loss estimate for the just-ended quarter, and widened their consensus for the company’s fiscal 2013 full-year loss by nearly a quarter per share. Yet the stock has rocketed higher, rising 37% since mid-December.
One big reason for the disparity between earnings expectations and Micron’s stock-price movement is that Micron got resolution in a long-standing patent dispute with Rambus . Early this year, a court ruled that Rambus’s patents were unenforceable, finally giving Micron some closure and taking away a threat that had held the stock down.
But Micron still faces a tough environment in its core DRAM and Flash memory business. Its acquisition of Japanese memory supplier Elpida will let Micron gain access to the lucrative iPhone 5, but with questions having arisen about the smartphone’s success, any shortfall in its sales could negatively affect Micron. Moreover, an analyst firm downgraded Micron earlier this month, arguing that DRAM demand is slowing.
Still, the big opportunity for Micron comes from the broader Big Data initiative that many technology companies are focusing on. Although Micron rival SanDisk has also seen its stock rise as demand for flash memory picks up, even old-style hard-drive makers Seagate Technology and Western Digital have gotten into the game, with Seagate having introduced a third-generation solid-state hybrid drive to boost speed and keep up with the level of innovation industrywide.
In Micron’s quarterly report, watch for the company’s latest calls on the health of the memory industry and its progress in moving forward with the Elpida acquisition. How the company handles its new foray into …read more
Source: FULL ARTICLE at DailyFinance
Make Money in "Strong Buy" Stocks the Easy Way
By Selena Maranjian, The Motley Fool
Filed under: Investing
Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you’d like to add some highly rated stocks to your portfolio, the Guggenheim Raymond James SB-1 Equity ETF could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously. It focuses on companies rated as “strong buys” by analysts at Raymond James.
The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The Guggenheim ETF‘s expense ratio — its annual fee — is 0.75%, which is on the steep side for an ETF but still cheaper than a typical stock mutual fund. The fund is fairly small, so if you’re thinking of buying, beware of possibly large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.
This ETF has performed reasonably, outpacing the S&P 500 over the past three and five years. As with most investments, of course, we can’t expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.
Why “strong buy” stocks?
Stocks deemed strong buys merit some consideration because savvy financial professionals have apparently found some appealing factors in them — though, of course, they’re not always right. (Indeed, my colleague Dan Dzombak has pointed out a blind spot they typically have.)
More than a handful of companies that have sported a “strong buy” rating recently have performed well over the past year. Valero Energy surged 63%, for example, profiting by processing cheap U.S. oil and then selling it at higher prices in Latin America and Europe — thereby helping keep fuel prices in the U.S. high. It stands to benefit from the proposed and controversial Keystone XL Pipeline, and has been investing in railcars to boost profits from the Bakken shale fields.
Regions Financial gained 42% and is attractive on many counts, having repaid its TARP obligation, posted improving net interest margin and asset quality, and had a powerful presence in the growing Southeast region. Its recent quarter featured a swing from a big loss to a big gain, among other achievements. My colleague Sean Williams has nominated the company’s leader for CEO of the year.
Swift Transportation , a trucking company, climbed 22%. Its fourth-quarter earnings surged 27% over year-ago levels as the trucking industry enjoys a resurgence, with January tonnage having been the highest in five years. Its Moody’s credit rating has been hiked recently, and analysts at TheStreet.com upped its rating from sell to hold.
Other companies didn’t do quite as well last year, but could see their fortunes change in the coming years. Micron Technology , for example, advanced 10%, as its believers expect that growth in tablets and smartphones, …read more
Source: FULL ARTICLE at DailyFinance
Here's What Some Big-Time Quants Are Buying
By Selena Maranjian, The Motley Fool
Filed under: Investing
Every quarter, many money managers have to disclose what they’ve bought and sold, via “13F” filings. Their latest moves can shine a bright light on smart stock picks.
Today, let’s look at the Renaissance Technologies hedge fund company, founded by James Simons, and known for its quantitative approach to investing. Simons explained in 2007 that, “We hire physicists, mathematicians, astronomers and computer scientists and they typically know nothing about finance… We haven’t hired out of Wall Street at all.” The company’s most well-known fund is the Medallion Fund. Interestingly, most of the company’s assets belong to employees of the firm, and outside investors are generally turned away.
Why should you look at Renaissance Technologies’ moves? Well, it’s hard to find performance data for it, but in his 2009 book “Blunder: Why Smart People Make Bad Decisions,” Zachary Shore noted that Renaissance’s flagship Medallion fund “has yielded an average 38% annual return since its inception in 1988. The fund has lost money only in a single year, 1989, when it dropped 4.1%.” That’s so remarkable that some have mused that it’s either a Madoff-like Ponzi scheme or a simply amazing hedge fund.
The company’s reportable stock portfolio totaled a whopping $34.3 billion in value as of Dec. 31, 2012, with several thousand holdings. (Concentration, thy name is not Renaissance Technologies!)
Interesting developments
So what does Renaissance’s latest quarterly 13F filing tell us? Here are a few interesting details:
The biggest new holdings are General Electric and PepsiCo. Other new holdings of interest include InterOil . InterOil is an interesting beast — it drills for natural gas in Papua New Guinea. It has major expansion plans, though, including building an export facility, and it’s looking for partners to help finance its growth. Its reserves have a lot of potential, but they’re not all proven. There’s risk in this company, but Renaissance seems to think the possible rewards outweigh that.
Among holdings in which Renaissance Technologies increased its stake was Micron Technology . Micron is hoping that growth in tablets and smartphones, not to mention laptop sales, will drive demand for memory chips. Some expect the company to post strong results soon due to surging DRAM prices. But analysts at Lazard recently downgraded Micron, expecting DRAM prices to level off.
Renaissance Technologies reduced its stake in lots of companies, including Altria . The domestic tobacco giant’s future doesn’t look as rosy as its past, due to a shrinking smoker base in the U.S., more folks moving to discount cigarettes , and rising taxes and regulations. Respected analysts at Steifel Nicolaus recently rated the stock a buy, but my colleague Rich Smith thinks they’re wrong. Altria sports a dividend yield of 5.2%, and its recent results have been strong, with solid management projections.
Finally, Renaissance’s biggest closed positions included Boeing and Wells Fargo. Other closed positions of interest include Halcon Resources and Sandridge Energy . Oil and gas company Halcon has been growing …read more
Source: FULL ARTICLE at DailyFinance