Posts for Ticker ‘STAR’

Tech Giants Now Hold ~$265 Billion Cash To Spend (HPQ, COMS, INTC, AMD, MSFT, CSCO, AAPL, GOOG, ORCL, JAVA, QCOM, EMC, YHOO, DELL, AMZN, EBAY, ONT, BRCD, JDSU, STAR, VMW)

You have already seen the Hewlett-Packard (NYSE: HPQ) buyout of 3Com Corporation (NASDAQ: COMS).  But this week before that deal was announced we covered how mergers in the technology sector have been very slow to develop over the scale in which we and others think is possible for the sector.  After the Intel Corporation (NASDAQ: INTC) settlement with Advanced Micro Devices (NYSE: AMD), the tally of cash that is now estimated would be an implied $265 billion that is available for the tech giants in our 24/7 Wall St. Real-Time 500 to make acquisitions.

The giant cash balances are held by Microsoft Corporation (NASDAQ: MSFT), Cisco Systems Inc. (NASDAQ: CSCO), Apple Inc. (NASDAQ: AAPL), Google Inc. (NASDAQ: GOOG), and Oracle Corp. (NASDAQ: ORCL), assuming nothing happens with Sun Microsystems Inc. (NASDAQ: JAVA).  But players like QUALCOMM Inc. (NASDAQ: QCOM), EMC Corporation (NYSE: EMC), International Business Machines (NYSE: IBM), Dell Inc. (NASDAQ: DELL), Yahoo! Inc. (NASDAQ: YHOO), Amazon.com Inc. (NASDAQ: AMZN), and eBay Inc. (NASDAQ: EBAY) are either all sitting with large amounts of cash or will be very soon.

We have broken out these technology, IT, software, and Internet companies by the cash amount they hold or what they have in a soon-to-be cash balance.  Of course only a fraction of this cash will be used for mergers.  But there is also a ton of room here for dividends and of course the share buybacks.

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Posted on: November 12, 2009 – 11:31 am in Consumer Electronics, Cramer, Dividend, Editor's Picks, Internet, Large Cap Stocks, Mergers and Buy Outs, PC Companies, Private Equity, Rumors, Semiconductor, Software, Stock Buybacks, Technology Companies, Telecom, , , , , , , , , , , , , , , , , , , ,

Tech Titans Still Have $269 Billion Cash For Deals (MSFT, CSCO, AAPL, GOOG, INTC, HPQ, QCOM, EMC, VMW, YHOO, DELL, ORCL, JAVA, AMZN, EBAY)

The recovery is on and mergers are happening, yet the technology sector has been slow to make deals.  Despite some deals already having taken place from the technology giants and that $260 billion cash balance which was there in the middle of last quarter is even larger now.  The tally for cash by our count is now right around $269 billion.  We looked through the top market caps of technology companies in our 24/7 Wall St. Real-Time 500 and this list is expanded now that some issues have been resolved in all the companies.  The stocks in this group are Microsoft Corporation (NASDAQ: MSFT), Cisco Systems Inc. (NASDAQ: CSCO), Apple Inc. (NASDAQ: AAPL), Google Inc. (NASDAQ: GOOG), Intel Corp. (NASDAQ: INTC), Oracle Corp. (NASDAQ: ORCL), Sun Microsystems Inc. (NASDAQ: JAVA), Hewlett-Packard Company (NYSE: HPQ), QUALCOMM Inc. (NASDAQ: QCOM), EMC Corporation (NYSE: EMC), International Business Machines (NYSE: IBM), Dell Inc. (NASDAQ: DELL), Yahoo! Inc. (NASDAQ: YHOO), Amazon.com Inc. (NASDAQ: AMZN), and eBay Inc. (NASDAQ: EBAY).

These few tech companies with the $269 billion cash that could be deployed for mergers, acquisitions, or the good old dividends are also listed before tallying up credit lines, factoring, debt sales, and other creative financing methods.  We have listed the suppositions and counting methods for each one to illustrate how much is available at each company.
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Posted on: November 10, 2009 – 1:07 pm in Consumer Electronics, Dividend, Editor's Picks, Internet, Large Cap Stocks, Mergers and Buy Outs, PC Companies, Private Equity, Rumors, Semiconductor, Technology Companies, Value Investing, , , , , , , , , , , , , , , , ,

Cisco (CSCO) Fans M&A Flames, Buys Starent (STAR) For Premium

TVCisco Systems, Inc. (NASDAQ:CSCO) was certainly anxious to buy Starent Networks (NASDAQ:STAR). It paid $35 a share for the supplier of IP-based mobile infrastructure solutions. Starent closed at $29 yesterday.

Cisco expects the acquisition to be dilutive to non-GAAP earnings in fiscal years 2010 and 2011 and accretive to non-GAAP earnings in fiscal year 2012.

The move may be strategically intelligent because it gets Cisco further into the  smartphone wireless infrastructure business. But, the deal is expensive. Starent only made $15 million on $62 million in revenue last quarter.

We recently noted how all of the tech titans were holding some $260 billion in cash that could be deployed for mergers.  This would hardly put a dent in that figure.

Douglas A. McIntyre

Posted on: October 13, 2009 – 9:31 am in Mergers and Buy Outs, Technology Companies, ,

Despite Sell-Off, Some Techs on 52-Week Highs (ARUN, ELOY, PWRD, STAR)

Money Stack ImageThere is an interesting line-up of tech stocks which hit 52-week highs today.  This is despite the wave of selling and profit taking we have seen.  We saw several hit highs on an intra-day basis, including Aruba Networks, Inc. (NASDAQ: ARUN), eLayalty Corporation (NASDAQ: ELOY), Perfect World Co., Ltd. (NASDAQ: PWRD), and Starent Networks, Corp. (NASDAQ: STAR).
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Posted on: June 23, 2009 – 4:28 pm in HI/LOW, Technology Companies, , , ,

Cramer’s Mobile Web & Digital TV Stocks (AAPL, RIMM, PALM, QCOM, ADI, BRCM, MRVL, RFMD, SNDK, STAR, SWKS, TXN, RSH)

Cramer ImageIf you are a fan of and an investor in the mobile web via smartphones and portable devices, then you do not even have to be a dedicated fan of Jim Cramer to become a fan of Jim Cramer for at least the time being.  On tonight’s MAD MONEY on CNBC, Cramer endorsed this move to the mobile web as the next investor opportunity as huge opportunity for many companies in the space.  But he also noted that he wants to buy the tech companies on pullbacks as he thinks the market for technology stocks is taking a little breather here.  Cramer believes that there is room for all of these major companies to make major cash as a result of the switch to newer and fast smartphones and mobile web devices.  He thinks there is room for all companies like Apple Inc. (NASDAQ: AAPL) for the iPhone, Research in Motion (NASDAQ: RIMM) for the Blackberry, and Palm Inc. (NASDAQ: PALM) for the new Pre smartphone.  He also noted QUALCOMM Inc. (NASDAQ: QCOM) as a winner in the space.
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Posted on: June 10, 2009 – 5:52 pm in Consumer Electronics, Cramer, Internet, Semiconductor, Technology Companies, WiMAX, Wireless, , , , , , , , , , , , ,

Top Analyst Downgrades (ARLP, BJS, CHKP, EP, FST, INFY, ISRG, STAR)

These are some of the top pre-market analyst downgrades and negative research calls from Wall Street we have seen early this Tuesday morning:

Alliance Resource (ARLP) Cut to Market Perform at Wachovia.
BJ Services (BJS) Cut to Underweight at JPMorgan.
Checkpoint Software (CHKP) Cut to Hold at Deutsche Bank.
El Paso (EP) Cut to Market Perform at Wachovia.
Forest Oil (FST) Cut to Hold at Jefferies.
Infosys Tech (INFY) Cut to Hold at Societe Generale.
Intuitive Surgical (ISRG) Cut to Market Perfoirm at JMP Securities.
Starent Networks (STAR) Cut to Hold at Cantor Fitzgerald.

JON C. OGG

Posted on: April 28, 2009 – 6:44 am in Analyst Calls, , , , , , , ,

Top Pre-Market Analyst Upgrades (EE, LRY, NEM, RSYS, RVBD, RYAAY, STAR, UPS)

Money_stack_picThese are some of the top analyst upgrades and positive research calls we have seen from Wall Street this Wednesday morning:

  • El Paso Electric (EE) Raised to Hold at Jefferies.
  • Liberty Property (LRY) Raised to Hold at Citigroup.
  • Newmont Mining (NEM) Raised to Buy at UBS.
  • Radisys (RSYS) Raised to Buy at Cantor Fotzgerald.
  • Riverbed Tech (RVBD) Raised to Buy at Merriman Curhan.
  • Ryanair (RYAAY) Raised to Hold at Deutsche Bank.
  • Starent (STAR) Started as Buy at Cantor Fitzgerald.
  • UPS (UPS) Raised to Outperform at Morgan Keegan.

Jon C. Ogg
February 4, 2009

Posted on: February 4, 2009 – 8:00 am in Analyst Calls, , , , , , , ,

Pre-Market Stock News (June 6, 2007)

(AAUK) Anglo American’s CEO will become a non-executive member of the board of directors at BP (BP).
(ACAD) Acadia Pharmaceuticals traded up over 10% after Jim Cramer touted the stock as a speculative play for trading the upcoming data on its schizophrenia and Parkinson’s treatment.
(ACOR) Acorda Therapeutics Starts Second Phase 3 Trial of Fampridine-SR in MS
(AMTD) TD AMERITRADE was notified that JANA and S.A.C. funds have secured an interest of roughly 8.6% stake to pressure the companies to enter a merger.
(AZN) AstraZeneca CFO leaves to join Goldman Sachs.
(CROX) Crocs is launching a fashionable line of high heel and flats for women to appeal to fashion conscious women.
(CSC) Computer Sciences Corp. may look to acquire iSoft Group plc in the UK.
(ETFC) E*Trade trading up 3% on AMERITRADE news.
(FCS) Fairchild Semiconductor reaffirmed Q2 growth targets.
(GSK) GlaxoSmithkline defends Avandia saying it does not increase heart risks.
(KFY) Korn Ferry $0.37 adjusted EPS versus $0.34 estimates.
(MAIR) MAIR Holdings -$0.06 EPS vs -$0.05e.
(PNRA) Panera trading down $7.00 on an earnings warning of $0.38-0.40 vs $0.47-0.51e.
(PLUG) Plug Power named new CFO.
(PRU) Prudential lays off 420 in a research phase out, will cease covering all equities immediately.
(RUS) Russ Berrie rejected an $18.00 buyout as an undervalued deal.
(SCHW) Charles Schwab traded up 1% after the AMERITRADE news.
(SIRI) Sirius Satellite Radio announced a $250 million term-loan from Morgan Stanley.
(STAR) Starent priced a 10.5 million share IPO at$12.00, above the $9.00 to $11.00 range.
(WFMI) Whole Foods is facing a deal blockage by the FTC over a ‘natural foods market disruption’ according to FTC.

Jon C. Ogg
June 6, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: June 6, 2007 – 7:13 am in Pre-Market Activity, , , , , , , , , , , , , , , , , , , ,

Starent Networks Premium IPO Pricing (STAR)

Starent Networks Corp. (STAR-NASDAQ) priced its awaited 10.5 million share IPO at $12.00 per share, above the original $9.00 to $11.00 range.  Underwriters are isted as Goldman Sachs, Lehman Brothers, Thomas Weisel, and J.P.Morgan.  9 million shares are being sold by the company, and 1.5 million shares are being sold by the company.  So the company will receive $108 million before fees. 

Starent is a provider of hardware and software enabling mobile-service operators to delivery multimedia services to subscribers.  It works with video downloads or streaming, Internet access, voice-over-IP, e-mail, mobile TV, video and photo sharing, gaming, and others.  On its site it lists Cantv, SK Telecom, US Cellular, Verizon, Virgin Mobile, Vivo, Zapp, China Unicom, and KDDI as its key customers.

The company had revenues of $94 million and net income was almost $4 million in 2006.  More information can be found at its website at starentnetworks.com.

Jon C. Ogg
June 6, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: June 6, 2007 – 6:59 am in IPOs, Software, Technology Companies, Wireless,