SanDisk (NASDAQ: SNDK) offers flash memory storage solutions. Flash memory storage consists of NOR and NAND technologies, which retain data independently even without power. Recently, it was announced that SanDisk plans to build a flash memory manufacturing plant along with Toshiba in Japan for $4 billion. SanDisk has entered into a strategic joint venture with Toshiba in order to manufacture chips with a circuit line width of 16nm-17nm.
The increasing more »
Brocade Communications Systems (NASDAQ: BRCD) has done an excellent job of growing its business, with revenue quadrupling in a decade. However, over the past couple of years, the growth seems to have stagnated, and the company is actually expected to report slightly lower revenue for the current year. Earnings are expected to be flat for the next few years, and the competition keeps getting stiffer.
Curiously, shares have spiked lately more »
Always on the lookout for the best deals in the market, I like to start with the month's biggest decliners to see if the market has overreacted in any way, selling off a company that does not deserve it.
There are always some interesting opportunities but last month presented some very interesting contrarian plays.
What's on offer?
First up, down 5.3% during the past month is Visa more »
Seagate Technology (NASDAQ: STX) is a leader in the hard-disk drive (HDD) market alongside Western Digital (NASDAQ: WDC). Seagate had done well after floods in Thailand disrupted supply and resulted in inflated prices of memory drives. But lately the company hasn't been doing as well, as its recent 4Q 2013 results were a mixed bag.
Seagate reported revenue of $3.4 billion, which was down 23.6 more »
With cloud storage turning into the new star of the digital era, what is the future for hard disk drives (HDD)? I do not like to think that one innovation erases competitors from the picture. I prefer to think that new technologies offer another possibility to accomplish our everyday tasks. So, let's look into three data storage market leaders: EMC (NYSE: EMC), Western Digital (NASDAQ: WDC), and Seagate Tech more »
Recently, SanDisk (NASDAQ: SNDK) experienced a decent rise of more than 3.4% in after hours trading to $57 per share. The positive market momentum was due to its recent announcement to initiate a $0.225 quarterly dividend per share and as much as $2.5 billion in new share buybacks. Should we invest in SanDisk after its recent announcement to accelerate cash return to investors? Let’s take a more »
Seagate Technology (NASDAQ: STX) tumbled 15% last week as the hard-disk- drive market is being hit hard by the introduction of tablets and ultrabooks. Since late 2011, the stock is up fourfold. Question is; with the uncertain future of hard disk drives, can Seagate really move any higher?
The news didn’t get any better last week when billionaire David Einhorn of Greenlight Capital announced his hedge fund was closing more »
Storage makers hit a wall of worry in the last few days, driven by weak quarterly results, a tepid outlook, and weaker profits. It is no secret that hard drive manufacturing is a mature market, but investors need to ask just one question: are storage devices just commodities set on a path of a permanent decline?
Profit margins slip
Finding value in technology stocks isn’t easy. The industry is known for high multiples and very little forward visibility, which is why so many value investing legends like Warren Buffett or Seth Klarman typically avoid technology names.
Sometimes Mr. Market delivers opportunity, however. These two small-cap tech stars deserve a bid, even after recent earnings disappointments.
Investors dump hard drives
Tech can be very difficult to predict. Investors often believe that they can discern an innovator from a laggard, but market trends come and go – especially in the consumer niche category. Below, I review two very different companies: Seagate (NASDAQ: STX), a data-storage device producer, and Google (NASDAQ: GOOG), an internet business with broad tech diversification.
What a turn of events Seagate has had.
It all started early more »
Modern hard drives have been around since the 1980's. The hard drive industry as it exists today has three dominant players: Seagate (NASDAQ: STX), Western Digital (NASDAQ: WDC) and Toshiba (NASDAQOTH: TOSBF).
If you live in America, for the past few years you've probably noticed the rise of smartphones and tablets. This rise has coincided with a decline in sales of personal computers. Those who are bearish on more »
Earnings can change the outlook for a company, good or bad, and they can also validate an opinion that you already may have. In the case of these four companies, earnings on Wednesday showcased significant concerns, and you should be careful before buying.
Strong Presence, What About the Future?
Seagate Technology (NASDAQ: STX) has performed very well lately, with shares up by around 30% year-to-date. The last time I wrote about Seagate was in late January, and I wrote about how undervalued the company was at the then-current share price of around $36. Fast-forward about six months, and while it appears that I was correct on a short-term basis, I’m in this game for the long haul! With more »
Earnings yield is a valuation method used to check if a company is over or undervalued compared to its peers and the wider market. A company's earnings yield is calculated by dividing earnings per share for the last twelve months by its current share price. The resulting figure shows the percentage of each dollar invested in the stock that was earned by the company.
The earnings yield figure can more »
Due to the high penetration of mobile devices, consumers have started to create large amounts of digital content. This has led to the growing demand for data storage devices. Consequently, sales of hard disk drives and solid-storage media, including SSD, 15K-RPM and 10K-RPM performance drives, are showing robust growth. Worldwide spending on cloud storage solutions is expected to grow from $91 billion in 2011 to $207 billion in 2016. It more »
Value investors often seek out profitable companies trading at bargain valuations. The investment strategy is a sound one -- some of the greatest investors in the world, including Warren Buffett, employ it.
But sometimes, profitable companies trade at bargain valuations for a reason. Often they are in broken businesses, and their long-term decline seems inevitable.
Western Digital (NASDAQ: WDC) controls around 40% of the hard drive market. That's a slowly dying business as new technology displaces the need for storage with moving parts. Western Digital is doing something about this problem and so is its main competitor.
Hard drives provide the best combination of storage space and cost. If the chip is the brains of a computer, the hard drive is the more »
Anybody that has invested in Fusion-io (NYSE: FIO) since the IPO back in 2011 probably has given up on catalysts for a rebound. The stock originally plunged as top customers Apple and Facebook supposedly reduced spending for the short-term, yet it has now led to the founders leaving the company, further questioning its growth potential.
The leader of server-side flash storage has seen a lack of growth in the two more »
We track quarterly 13F filings from hundreds of hedge funds and other notable investors, using the results to help us identify investing strategies; we have found, for example, that the most popular small cap stocks among hedge funds deliver an average excess return of 18 percentage points per year.
We also like to go through individual managers’ filings for interesting stock picks; some argue that because the information in 13Fs more »
Goldman Sachs is out with a list of overpriced stocks. Interestingly enough, four of the top ten are PC-related names.
According to Goldman, the most overpriced stock is chip company AMD (NYSE: AMD). Rival Intel (NASDAQ: INTC) is close at number 3, while PC-maker Hewlett-Packard (NYSE: HPQ) comes in at number 4. Down at number 9 is hard drive maker Seagate (NASDAQ: STX). (Juniper Networks and Xerox are also on more »
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