3StocksOnFire — US Stock Trading Community · 451+ trades · 257% returns · 15,000 members · Main Site · Trader's Guide · Articles · Video Analyses
3 Stocks On Fire
3StocksOnFire Community Forum
Home Message Boards Trader's Guide Articles Video Analysis About Us Search Register
Menu

Show posts

This section allows you to view all posts made by this member. Note that you can only see posts made in areas you currently have access to.

Show posts Menu

Messages - setravis

#1
Oracle's Growth Will Return

Database giant Oracle (ORCL) disappointed investors on Tuesday with earnings and revenue that missed Street expectations. The stock was down more than 5% Tuesday after the close. And frustrated investors continue to wonder what else can go wrong with the enterprise software company.

Fiscal Third-Quarter Results

Oracle reported third quarter revenues of $9.3 billion, up 4% on the year before. But this wasn't enough to please investors. Analysts were looking for revenue of $9.36 billion. Oracle showed moderate strength in new software licenses and cloud software subscriptions. That business posted revenues of $2.4 billion, which was up 4% year over year. But that, too, was considered unimpressive.

Analysts like Daniel Ives of FBR Capital Markets wasn't impressed. Ives was looking for 7% growth in the cloud subscription business. He argued that the enterprise IT spending was strong enough to support this projection. Ives has been a notable critic of Oracle and believes that the company is being left behind by nimbler rivals like Salesforce.com (CRM) and Workday (WDAY).

But Ives overlooked some positives in Oracle's report. For instance, revenue from hardware systems products rose 8% to $725 million. This has been the first growth Oracle has experienced in that business in four years. This hardware growth accounts for 30% growth (on a constant currency basis) in the engineered server systems business. CEO Larry Ellison made certain that highlight this fact. He said:

"
"Our Engineered Systems business is growing rapidly for the same fundamental reason that our Cloud Applications business is growing rapidly. In both cases, customers want us to integrate the hardware and software and make it work together, so they don't have to."

Likewise, it's worth noting that Ellison has been extremely vocal about his intentions with Oracle. While the company has not demonstrated the growth that investors would like, management has been clear in its execution. Oracle is transitioning the business to stronger growth areas. What's more, Oracle's cloud software sales were actually up 25% year over year.

From an operational perspective, Oracle's results weren't as bad as the Street made them out to be. It's true that the company missed Wall Street's expectations for adjusted earnings per share. But GAAP earnings per share were up 8% to 56 cents. Likewise, non-GAAP earnings per share were up 5% to 68 cents per share.

Equally impressive is that fact that amid all of this anxiety about Oracle's future, it's encouraging that operating cash flow on a trailing twelve-month basis was up 10% to $15 billion. Again, where Oracle is perceived deficient in terms of revenue, the company has to forgotten how to make money. And when you consider that the revenue miss was by less than half a percentage point, there's clearly been an overreaction.

Looking ahead

For the current quarter, the company expects EPS (excluding items) to be in the range of 92 cents to 99 cents per share. Meanwhile, fourth-quarter revenue is projected to post year-over-year improvement of 3% to 7%. Analysts had modeled earnings of 95 cents and revenue of $11.5 billion, which suggests 5% growth.

Summary

The bullish case for Oracle is simple, as businesses strive for growth, the growth process will always place more demand on IT services. And as IT services get more complicated, it will require increased levels of expertise manage the enterprise. There is no other company more capable of delivering these services than Oracle.

All told, Oracle remains incredibly profitable. And the guidance for the final quarter is encouraging. As it stands, the stock looks incredibly cheap at 12-times forward earnings. On the basis improved cash flow and cloud-based software growth.
#2
Oracle's Growth Will Return The Stock To $45 Per Share

Summary
• The bullish case for Oracle is simple, as businesses strive for growth, the growth process will always place more demand on IT services.
• From an operational perspective, Oracle's results weren't as bad as the Street made them out to be.
• Oracle remains incredibly profitable. And the guidance for the final quarter is encouraging.
#3
Nice move with this baby...
#4
Personal Logs / Re: One-Stop Shopping (setravis)
March 20, 2014, 04:36:22 PM
Capstone isn't the only company set to profit from a booming energy market. These three stock have the potential to soar!

3 Stocks to Get on Your Watch List
I follow quite a lot of companies, so the usefulness of a watch list for me cannot be overstated. Without my watch list, I'd be unable to keep up with my favorite sectors and see what's really moving the market. Even worse, I'd be lost when the time came to choose which stock I'm buying or shorting next.

Capstone Turbine (NASDAQ: CPST)
Speaking of companies with highly volatile hit-and-miss potential, microturbine developer Capstone Turbine has to come to mind.

Shares of Capstone have been extremely volatile lately as anything resembling an alternative energy system has shot through the roof, from fuel-cell systems and ethanol producers to turbine and microturbine developers.

For Capstone, sales growth has been no issue. A week ago today Capstone secured an order for 50 Captsone C65 microturbines for oil and gas shale companies around the country, raising the total number of microturbines in use via its distributor Horizon Power Systems to 550. This order came just one week after securing a 2.6 MW order for two of Capstone's natural gas-powered microturbines from Regatta Solutions to be used in select California hospitals.

For more evidence we can turn to Capstone's third-quarter highlights, released in February, where it delivered record product revenue of $29.9 million, boosted its backlog 7% to $160.4 million, and, more importantly, produced a six percentage point improvement in gross margin to 20%.

Of course, the one monkey on Capstone's back has been that it still hasn't reached breakeven EBITDA despite its rapid top-line growth and cost controls. However, I suspect that could change in either the fourth or first quarter. Although Capstone's profits won't be much to admire for the next year or two, as long as it can continue to push margins healthfully in the 20%-25% range there's a strong possibility that it could head much higher over the long run. Yet again, this isn't a company for the faint of heart -- but it has all the makings of a solid growth candidate.


Novavax (NASDAQ: NVAX)
The biotechnology sector offers a number of wildcard, predominantly clinical-stage stocks that have the potential to double -- or halve -- their value depending on the outcome of a single trial or two. One company that tends to fit the mold here is Novavax.

Novavax is a developer of vaccines designed to treat infectious diseases around the globe. The good news for shareholders is that Novavax is already generating revenue thanks to an influenza vaccine research contract through BARDA, as well as a handful of collaborative partnerships. Although Novavax could be giving up some of its earning potential by partnering up, it can also spread its costs and risks, allowing it more opportunities to find that elusive home run in the biotech sector.

Currently, the most exciting research ongoing for Novavax is a phase 2 study for respiratory syncytial virus, or RSV, a disease that infects a patient's lungs and breathing passages. Most people can recover from RSV infection, but it can be more serious for infants and the elderly. According to the Centers for Disease Control and Prevention, nearly all children will be infected with RSV by age two, hence the need for additional research.

However, investors may also want to consider that even though Novavax's pipeline is still young and predominantly unproven, the company is being valued at more than $1 billion in terms of overall value. It's quite possible that Novavax will continue to burn cash for the foreseeable future as it invests in new development programs and moves forward with its ongoing phase 1 and phase 2 studies. This doesn't necessarily mean the company won't succeed, but it does put downside pressure on a company that has historically produced losses and had a cumulative free-cash outflow of $279 million over the past decade.

It also wouldn't take much for Novavax to be knocked off its high horse if one of its primary studies in either RSV or influenza didn't meet its goals. I would personally guess that more than half of Novavax's current value is built into the success of its RSV and influenza platform, so a disappointment in either of these studies could seriously affect Novavax's share price.

One way or another, this has big-move potential, and risk-friendly investors should have this company on their watch lists.


White Mountains Insurance Group (NYSE: WTM)
The property and casualty reinsurance business is far from glamorous, but if a relatively conservative and nearly rock-steady investment exists within the sector, I would contend that White Mountains Insurance just might be it.

White Mountains is engaged in underwriting property and casualty insurance, as well as reinsuring products through the U.S. As you might imagine, this means that White Mountains can occasionally find itself at the mercy of Mother Nature. Events like Hurricane Sandy have a way of heavily impacting P&C insurers and reinsurers, and there's unfortunately very little these companies can do to predict when and where a natural disaster will strike.

However, one aspect that does work in favor of P&C insurers is that they possess the pricing power to boost premiums for existing customers on an as needed basis to ensure that they cover the catastrophe costs. The past year was incredibly kind to White Mountains, with very little in the way of catastrophe losses. Overall, this helped push the company's book value higher by 9.5% to $642 per share. With White Mountains operating out of four primary segments it noted significant strength from OneBeacon Insurance (NYSE: OB  ) , whose book value grew 17.3% and whose combined ratio (a measure of margin for insurers) came in at a steady 92% compared to this quarter last year.

If I could nitpick one aspect of White Mountains' generally conservative approach to running a business, it's that its dividend is far too conservative. At just $1 annually, yielding less than 0.2%, dividend-seeking investors had best consider looking elsewhere.

That aside, White Mountains is currently valued at around 10% of its book value, which, historically, makes this a good time to buy. Don't expect miraculous growth with a diversified insurance company, but do expect to sleep well at night. I'd suggest giving White Mountains a closer inspection.

Add these companies to your personalized Watch List to keep up on the latest news with each company:
• Add Novavax to My Watch List.
• Add Capstone Turbine to My Watch List.
• Add White Mountains Insurance Group to My Watch List.
#5
Capstone isn't the only company set to profit from a booming energy market. These three stock have the potential to soar!

3 Stocks to Get on Your Watch List
I follow quite a lot of companies, so the usefulness of a watch list for me cannot be overstated. Without my watch list, I'd be unable to keep up with my favorite sectors and see what's really moving the market. Even worse, I'd be lost when the time came to choose which stock I'm buying or shorting next.

Capstone Turbine (NASDAQ: CPST)
Speaking of companies with highly volatile hit-and-miss potential, microturbine developer Capstone Turbine has to come to mind.

Shares of Capstone have been extremely volatile lately as anything resembling an alternative energy system has shot through the roof, from fuel-cell systems and ethanol producers to turbine and microturbine developers.

For Capstone, sales growth has been no issue. A week ago today Capstone secured an order for 50 Captsone C65 microturbines for oil and gas shale companies around the country, raising the total number of microturbines in use via its distributor Horizon Power Systems to 550. This order came just one week after securing a 2.6 MW order for two of Capstone's natural gas-powered microturbines from Regatta Solutions to be used in select California hospitals.

For more evidence we can turn to Capstone's third-quarter highlights, released in February, where it delivered record product revenue of $29.9 million, boosted its backlog 7% to $160.4 million, and, more importantly, produced a six percentage point improvement in gross margin to 20%.

Of course, the one monkey on Capstone's back has been that it still hasn't reached breakeven EBITDA despite its rapid top-line growth and cost controls. However, I suspect that could change in either the fourth or first quarter. Although Capstone's profits won't be much to admire for the next year or two, as long as it can continue to push margins healthfully in the 20%-25% range there's a strong possibility that it could head much higher over the long run. Yet again, this isn't a company for the faint of heart -- but it has all the makings of a solid growth candidate.


Novavax (NASDAQ: NVAX)
The biotechnology sector offers a number of wildcard, predominantly clinical-stage stocks that have the potential to double -- or halve -- their value depending on the outcome of a single trial or two. One company that tends to fit the mold here is Novavax.

Novavax is a developer of vaccines designed to treat infectious diseases around the globe. The good news for shareholders is that Novavax is already generating revenue thanks to an influenza vaccine research contract through BARDA, as well as a handful of collaborative partnerships. Although Novavax could be giving up some of its earning potential by partnering up, it can also spread its costs and risks, allowing it more opportunities to find that elusive home run in the biotech sector.

Currently, the most exciting research ongoing for Novavax is a phase 2 study for respiratory syncytial virus, or RSV, a disease that infects a patient's lungs and breathing passages. Most people can recover from RSV infection, but it can be more serious for infants and the elderly. According to the Centers for Disease Control and Prevention, nearly all children will be infected with RSV by age two, hence the need for additional research.

However, investors may also want to consider that even though Novavax's pipeline is still young and predominantly unproven, the company is being valued at more than $1 billion in terms of overall value. It's quite possible that Novavax will continue to burn cash for the foreseeable future as it invests in new development programs and moves forward with its ongoing phase 1 and phase 2 studies. This doesn't necessarily mean the company won't succeed, but it does put downside pressure on a company that has historically produced losses and had a cumulative free-cash outflow of $279 million over the past decade.

It also wouldn't take much for Novavax to be knocked off its high horse if one of its primary studies in either RSV or influenza didn't meet its goals. I would personally guess that more than half of Novavax's current value is built into the success of its RSV and influenza platform, so a disappointment in either of these studies could seriously affect Novavax's share price.

One way or another, this has big-move potential, and risk-friendly investors should have this company on their watch lists.


White Mountains Insurance Group (NYSE: WTM)
The property and casualty reinsurance business is far from glamorous, but if a relatively conservative and nearly rock-steady investment exists within the sector, I would contend that White Mountains Insurance just might be it.

White Mountains is engaged in underwriting property and casualty insurance, as well as reinsuring products through the U.S. As you might imagine, this means that White Mountains can occasionally find itself at the mercy of Mother Nature. Events like Hurricane Sandy have a way of heavily impacting P&C insurers and reinsurers, and there's unfortunately very little these companies can do to predict when and where a natural disaster will strike.

However, one aspect that does work in favor of P&C insurers is that they possess the pricing power to boost premiums for existing customers on an as needed basis to ensure that they cover the catastrophe costs. The past year was incredibly kind to White Mountains, with very little in the way of catastrophe losses. Overall, this helped push the company's book value higher by 9.5% to $642 per share. With White Mountains operating out of four primary segments it noted significant strength from OneBeacon Insurance (NYSE: OB  ) , whose book value grew 17.3% and whose combined ratio (a measure of margin for insurers) came in at a steady 92% compared to this quarter last year.

If I could nitpick one aspect of White Mountains' generally conservative approach to running a business, it's that its dividend is far too conservative. At just $1 annually, yielding less than 0.2%, dividend-seeking investors had best consider looking elsewhere.

That aside, White Mountains is currently valued at around 10% of its book value, which, historically, makes this a good time to buy. Don't expect miraculous growth with a diversified insurance company, but do expect to sleep well at night. I'd suggest giving White Mountains a closer inspection.

Add these companies to your personalized Watch List to keep up on the latest news with each company:
• Add Novavax to My Watch List.
• Add Capstone Turbine to My Watch List.
• Add White Mountains Insurance Group to My Watch List.
#6
Capstone isn't the only company set to profit from a booming energy market. These three stock have the potential to soar!
#7
Why Capstone Turbine Corporation (CPST) Hit a Five-Year High Today (Update)

Update (4:15 p.m.): Updated with five-year high price and Wednesday market close information.

NEW YORK (TheStreet) -- Capstone Turbine Corporation  (CPST_) hit a five-year high of $2.60 on Wednesday as the microturbine manufacturer continued to climb after its announcement earlier in the week that it had received several orders from oil and gas companies.

Capstone said it received orders from E-Finity Distributed Generation for turbines that the latter plans to use in oil and gas operations in the Marcellus and Utica Shale regions. Marcellus is the biggest source of natural gas in the U.S. at 104,000 square miles in Pennsylvania and West Virginia.



Capstone received the orders from E-Finity, a distributor of Capstone turbines, but the companies that actually placed the orders were not identified.

"The Capstone microturbine product has been the first choice for recent new and existing customers and is being selected due to its proven ability to provide reliable power for the natural gas and oil industry," said Jeff Beiter, an E-Finity managing partner, in a statement.

The stock closed at $2.45, up 3.81% or 9 cents from its previous close of $2.36. It amassed a volume of 24,083,822, more than triple its average of 7,010,580.

Must Read: Warren Buffett's 10 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates CAPSTONE TURBINE CORP as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate CAPSTONE TURBINE CORP (CPST) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:
◾The gross profit margin for CAPSTONE TURBINE CORP is rather low; currently it is at 21.30%. Regardless of CPST's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CPST's net profit margin of -5.91% significantly underperformed when compared to the industry average.
◾The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, CAPSTONE TURBINE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
◾CAPSTONE TURBINE CORP reported flat earnings per share in the most recent quarter. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, CAPSTONE TURBINE CORP's EPS of -$0.07 remained unchanged from the prior years' EPS of -$0.07. This year, the market expects an improvement in earnings (-$0.05 versus -$0.07).
◾The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 51.1% when compared to the same quarter one year prior, rising from -$4.48 million to -$2.19 million.
◾Compared to its closing price of one year ago, CPST's share price has jumped by 131.94%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in CPST do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
◾You can view the full analysis from the report here: CPST Ratings Report
#8
Personal Logs / Re: One-Stop Shopping (setravis)
February 27, 2014, 07:28:09 PM
The key to making money in the stock market is buying right before
a big move happens.  That means knowing how to spot key market
turning points.
It also means not losing in a bear market and knowing to buy when a
bull market starts.
Do your DD!!!

Do your own DD and invest based on your DD, not mine !

:) ;) ;D
#9
Personal Logs / Re: "The 3 Magic Lines Strategy"
February 25, 2014, 07:03:35 PM
Terliso, This has been one of my favorite threads here, Great work you have done with it!
CPST has always been one of my favorite stocks to trade around with and make some $'s.
Nice trading hectorgr!!!
#10
Penny Stock Picking / Re: IAUS-Solar power-news this a.m
February 25, 2014, 06:56:47 PM
GarryBroach, Thanks for the update!
I will check it all out.
#11
Is ON Becoming the Best Chip Stock for 2014?

Chip-maker ON Semiconductor Corp. (NASDAQ: ONNN) posted better than expected results after the markets closed last Thursday, and the stock closed up more than 8.5% on Friday after posting a new 52-week high. Volume reached nearly 6-times the stock's daily average of around 6 million shares traded.

 
The company posted fourth quarter earnings per share of $0.17 on revenues of $718 million, handily beating analysts' consensus for EPS of $0.14 on revenues of $691 million. For the current quarter the company is guiding revenues in a range of $695 to $725 million.

ON's consensus price target for 2014 is $9.81 and its forward earnings multiple is 9.79. Only Micron Technology Inc (NASDAQ: MU) among major chip makers has a lower multiple. Based on Friday's closing price of $9.03 and a consensus price target of $9.81, the potential upside on the stock is barely 9%. But analysts will be taking a look at that price target given ON's fourth quarter results.

In the fourth quarter ON generated 27% of its revenues from the automobile market and the company expects auto-related revenues to rise in the first quarter. Sales fell in ON's communications market to 18% of the company total, which the company said was due to a broad-based inventory correction in the smartphone market. First quarter revenues are expected to be lower in this segment and in the company's consumer segment due to normal seasonality.

ON is in the right place at the right time with its variety of application-specific products, mixed-signal processors, and power interface products. As the "Internet of Things" becomes a reality, ON's products will make their way into more of those "things."

The stock closed at $9.03 on Friday after posting a new 52-week high of $9.27. The 52-week low is $6.80.
#12
Oracle results beat the cloud naysayers, at least for one quarter

Oracle (ORCL) investors partied a day after the database giant released its fiscal second quarter earnings showing big gains for cloud services and some high-end hardware. Shares of Larry Ellison's baby jumped 6%, surpassing not just the 52-week high from back to March but the May, 2011, post-Internet bubble high as well.

On the surface, Oracle's overall results were nothing to get so excited about, with revenue up 2% and net income declining 1%. The results just slightly exceeded what analysts expected.

So why the big move in the stock?


Oracle and a few similarly situated big tech stocks like IBM (IBM), Cisco (CSCO) and Microsoft (MSFT) are caught in a battle of investor expectations. Critics and short sellers argue that the shifts to cloud computing and mobile devices are eviscerating the lumbering giants. Backers maintain the companies are successfully, if slowly, responding.

Oracle was able to fuel the bullish case this time around, with evidence that some of its newer businesses could grow quickly enough to offset declines in increasingly outmoded software and gear lines.

On the software side, Oracle reported that bookings for its cloud services rose 35%. "We decided that we were really going to lean in to the cloud to get market share," Oracle President Safra Catz noted on a call with analysts on Wednesday. Actual revenue from cloud-related services rose 20%.

On the hardware side, where the popularity of cloud services has reduced demand for companies buying their own servers, Oracle showed some of its cutting-edge products still have appeal. Sales of the Exadata line, a specialized server for running Oracle software, rose at double-digit rates, while Sparc Superclusters, huge integrated boxes for data centers, at triple-digit rates, the company said without giving specific numbers.

Still, sales of much of the rest of the line-up are plummeting. And while total hardware sales slipped just 3% from the prior year, they're down 25% from fiscal 2012 and almost 40% from 2011.

So even for Oracle's biggest fans, it's too early to declare victory.

Oracle's share of the server market dropped to just 4.1% in the calendar third quarter, according to IDC data. And pure cloud service providers like Salesforce.com (CRM) and Workday (WDAY) continue to steal away Oracle customers. Workday, started by executives who left Peoplesoft after Oracle purchased it in 2005, reported a 76% increase in revenue in its most recent quarter. Salesforce revenue increased 36%.

If it's going to survive and thrive under the onslaught from new players, Oracle needs to turn those increased bookings into increased revenue.
#13
buy & sell ONNN over & over again..Look at a 9 month chart. ONNN was in the member's section on ChannelingStocksdotcom website. Buying and selling ONNN over and over again.
The 9 month chart tells it all...


Day's Range: 7.16 - 7.28
52wk Range: 5.70 - 8.73
Volume: 2,670,010
Avg Vol (3m): 4,783,050
Market Cap: 3.27B
P/E (ttm): N/A
EPS (ttm): -0.12
#14
..SoC Integration for Mobile Devices Becomes Technology Growth Driver: An Interview with Mark Li, Senior Research Analyst Covering the Asian Semiconductor Sector for Sanford C. Bernstein & Co.
Wall Street Transcript – Tue, Oct 1, 2013 2:24 PM EDT


67 WALL STREET, New York - October 1, 2013 - The Wall Street Transcript has just published its Semiconductors Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Mobile Device Consumer Demand - Enterprise Data Storage Demand - Energy Efficiency, Cloud Computing and Telecommunications

Companies include: Taiwan Semiconductor Manufactu (TSM), Semiconductor Manufacturing In (SMI), Intel Corporation (INTC), Apple Inc. (AAPL), United Microelectronics Corpor (UMC), QUALCOMM Inc. (QCOM), Advanced Semiconductor Enginee (ASX) and many others.

In the following excerpt from the Semiconductors Report, award winning expert analyst Mark Li discusses the outlook for the sector for investors:

TWST: You expect the Chinese fabless industry to outgrow the overall semiconductor sector. Which companies are in the best position to capture that growth, and why?

Mr. Li: For suppliers that provide manufacturing service to these companies, I think two companies will be the key beneficiaries. One is TSMC (TSM). The second one is SMIC (SMI). TSMC is well-positioned because now they are indeed the share leader in that space. They have very good technologies, a well-recognized brand for quality, reliability as well. And the second beneficiary will be SMIC. They have number-two share in this market. It's also a pure-blood Chinese foundry with equity investments from Chinese government, so oftentimes it's the preferred supplier in the eyes of Chinese government or Chinese companies. They are also cheaper compared to TSMC, and finally, they have been improving their execution and quality in the past one to two years. So now their quality, delivery has been pretty solid, enough to satisfy the needs of Chinese companies without issue.

TWST: You expect risk to intensify in the foundry sector over the next few years. What factors will lead to increased risk, and which companies do you think are best prepared to withstand increased risk?

Mr. Li: There are, I think, three risks that foundry will be facing going forward. The first one is cost increase at a very fast rate, and that's going to pressure everyone, basically everyone who wants to do newer technology. They all have to spend high R&D expense or capex investment in new technology or capacity and will need to face that cost challenge.

The second factor is upcoming competition from Intel (INTC). You can see right now, in terms of end application, smartphones are getting bigger and PC demands are weakening...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
#15
Sirius XM Breaks $4.00 this week..Buy Backs Break down the wall.. Calling it now.
Sentiment: Strong Buy

Day's Range: 3.92 - 3.97
52wk Range: 2.55 - 3.99
Volume: 26,720,638
Avg Vol (3m): 38,052,000
Market Cap: 24.53B
P/E (ttm): 52.67
EPS (ttm): 0.08