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Stock Market & Financial Investment News

News Breaks
August 4, 2014
11:02 EDTMSFT, VMW, IBM, CSCO, EMCVMware seen as takeover candidate if spun from EMC
Shares of VMware (VMW) and EMC (EMC) are advancing after FBR Capital wrote that VMware would become an acquisition target if it is spun off from EMC, as has reportedly been urged by an activist investor. Meanwhile, EMC could take more steps to enhance shareholder value, FBR Capital believes. WHAT'S NEW: After The Wall Street Journal reported that hedge fund Elliott Management would push EMC to spin off VMware, FBR Capital analyst Daniel Ives wrote that he thinks that such a spin-off would make VMware "a top acquisition candidate." Among the potential acquirers of VMware in such a scenario are IBM (IBM), Microsoft (MSFT), and Cisco (CSCO), Ives contended. Furthermore, EMC could consider other measures to enhance shareholder value, including a reduction of the company's stake in VMware and an increase in its dividend and/or share repurchases, Ives believes. Meanwhile, EMC's fundamentals appear healthy, as FBR's checks suggest that the company is poised to capitalize on solid trends this year and beyond, the analyst wrote. He raised his price target on EMC to $35 from $33 and kept an Outperform rating on the shares. WHAT'S NOTABLE: Elliott Management has obtained a stake of over $1B in EMC, The Journal reported on July 21. During its earning conference call on July 23, EMC management said it had heard nothing else from Elliot Management at that point other than the request for a meeting. EMC added, "We are always open and welcome with dialogue with all of our shareholders... and will respectfully listen to them." PRICE ACTION: In mid-morning trading, EMC rose 0.7% to $29.25 and VMware advanced 1.4% to $99.69.
News For VMW;EMC;IBM;MSFT;CSCO From The Last 14 Days
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February 26, 2015
05:47 EDTEMC, VMWAtos and EMC to further strengthen strategic alliance
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February 25, 2015
10:34 EDTMSFTHP slide after currency driven guidance cut called buying opportunity
The shares of Hewlett-Packard (HPQ) are falling after the company reported lower than expected first quarter revenue and sharply lowered its free cash flow guidance and cut its fiscal year profit view. However, analysts at Citigroup, Bernstein, and Brean Capital all recommended buying the stock on weakness in separate notes to investors today. BACKGROUND: HP reported slightly higher than expected Q1 profits, but its revenue came in below expectations. The company sharply lowered its fiscal 2015 free cash flow guidance to $3.5B-$4B from its previous outlook of $6.5B-$7B. The tech giant also lowered its fiscal 2015 EPS guidance to $3.53-$3.73 from its previous outlook of $3.83-$4.30. "While we were able to manage the impact of currency in the quarter and deliver earnings as expected, we believe the impact on FY15 will be significantly greater than we anticipated in November. We'll work hard to offset these impacts through re-pricing and productivity, but fully mitigating currency movements of this size would require reducing investments and mortgaging our future. We won't do that," said HP CEO Meg Whitman. ANALYST REACTION: The decline in HP's EPS guidance was entirely due to foreign currency fluctuations, while most of the cut in its free cash flow guidance was caused by one-time costs related to the upcoming split of HP into two separate companies, Citi analyst Jim Suva stated. Most of the company's businesses "continue to perform well or at least make progress," wrote Suva. The decline in the stock has created an attractive entry point for investors who are looking to own the shares in order to benefit from the break-up, according to the analyst. He kept a Buy rating on the shares. Bernstein analyst A.M. Sacconaghi was less upbeat on HP's outlook, but also recommended buying the shares on today's weakness. Although revenue estimates for HP may be too high, the stock's valuation remains attractive, as it is the second least expensive tech stock in the S&P 500, according to Sacconaghi, who believes the shares are worth $45-$50. Cautioning that HP's stock is likely "to be in the penalty box" in the near-term, Sacconaghi nonetheless believes that the shares could get a significant boost when the company provides more information about its spin-off. He recommended that investors buy the stock on today's weakness and kept an Outperform rating on the shares. HP's fundamentals haven't changed, as the company continues to expect its revenue to remain flat in fiscal 2015, and it has not changed its capital return guidance, Brean Capital analyst Ananda Baruah stated. The company also continues to expect free cash flow of at least $5B-$6B in 2016 and beyond, Baruah added. Moreover, HP's share repurchases are unlikely to be significantly reduced as a result of the decline in its free cash flow guidance, the analyst predicted. Baruah recommended buying the stock on today's weakness and kept a $45 price target and Buy rating on the shares. PRICE ACTION: In early trading, HP fell 9.5% to $34.84. OTHERS TO WATCH: Other large cap PC levered names are also weak in morning trading after HP's report last night, with Microsoft (MSFT) down 0.25% and Intel (INTC) down 1.2%.
09:53 EDTCSCOCredit Suisse technology analysts hold an analyst/indusr
Analysts provide takeaways from Qualcomm, Cisco and Arista Networks on an Analyst/Industry conference call to be held on February 25 at 10 am.
09:48 EDTMSFTIDC reports 96.3% smartphone marketshare for iPhone, Android
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09:25 EDTCSCOCisco, Apple among U.S. names cut from China state buying list, Reuters says
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07:27 EDTIBMThe Linley Group to hold a conference
Linley Data Center Conference 2015 is being held in Santa Clara, California on February 25-26.
05:54 EDTMSFTStocks with implied volatility below IV index mean; FOSL QCOM
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February 24, 2015
16:20 EDTVMWVMware appoints Bask Iyer as Chief Information Officer
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15:46 EDTVMWJuniper CIO leaving company for same role at VMware, Business Insider says
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09:56 EDTVMWVMware large DoD contract likely to be delayed, says Nomura
Nomura said competitors have protested VMware's large Defense Information Systems Agency $1.6B over 5-year contract expected to have been awarded to the company by the end of March. The firm expects a delay in the ward and for the scope of the contract to be modified. Nomura said its unclear how much of the contract is incremental business vs. renewals and weather renewals will be delayed. Shares of VMware are Neutral rated with a $95 price target.
February 23, 2015
14:24 EDTIBMIBM signs strategic teaming agreement with Tech Mahindra
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February 22, 2015
18:09 EDTCSCOArista Networks shares could be a bargain, Barron's says
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February 20, 2015
11:37 EDTIBMIBM volatility low into host investor day
IBM February weekly call option implied volatility is at 17, March is at 15, July is at 17; compared to its 26-week average of 20 according to Track Data, suggesting decreasing movement into a company hosted investor day to be held in New York on February 26.
February 19, 2015
15:32 EDTIBMIBM to host investor day
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08:48 EDTVMWVMware to hold a conference call with Jefferies
Jefferies Analyst John DiFucci co-hosts a conference call to discuss the VMware vSphere 6 and VMware Integrated OpenStack (VIO) on February 19 at 12 pm. Webcast Link
07:12 EDTIBMWharton Health Care Club to hold a conference
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February 18, 2015
16:27 EDTMSFTiPass announces Wi-Fi agreement with Microsoft
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10:18 EDTMSFTInterDigital drops after reportedly lossing appeal in patent case
Shares of InterDigital (IDCC) are moving lower after Bloomberg reported the company lost its bid to revive patent-infringement claims against Microsoft (MSFT) and ZTE Corp. over mobile phone technologies. Shares of InterDigital are down 83c to $50.06.
07:38 EDTVMWVMware named a Franchise Pick at Jefferies
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05:57 EDTMSFTStocks with implied volatility below IV index mean; MSFT QCOM
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