Skip to main content

Tech Bargains ?

As expected Yahoo rejected Microsoft offer. I think it is typical negotiation tactic and will play out similar to BEA/Oracle and both companies will split the difference and settle the deal at about $35-36 (just right at the magic number of $50B). Yahoo does not any way out - they had last 2-3 years which they wasted in adding any shareholder value. It would be fun to watch all the drama along the way.

In last few months, I was not tracking many tech stocks for active investments. But this year, techs are getting killed and once high-flying stocks are trading in single-digits. For example, SIRF which is leader in GPS chips is at $7 (used to be over $30). Aruba Networks which is only other player in wi-fi gear is trading below $5 (it used to be above $20). Granted that both these companies gave some serious revenue warnings but I think markets over-reacted to news and both these stocks would be up by 50% in next 12 months (and by the way, they are as attractive takeover targets as Yahoo was when it fell below $20)

Looks like Republicans are set with McCain as their candidate (conservatives don't have a choice) and democrats are still wondering who will be their candidate. Obama is gaining traction but he is no-where near half-way mark and most likely this race is going to go into Summer.

The hottest Indian IPO - Reliance Power listing was a bummer. It listed nearly 17% BELOW offer price of Rs 450. How quickly the fortunes change. I think Rs 350 gives a good entry point for Reliance Power

That's all for now
Good luck and good night

/Shyam

Comments

Popular posts from this blog

2025 = Is it going to be 1997 or 2000?

Happy Holidays... After 5 months of hibernation with no real reason than writing block, I decided to use quiet morning of Christmas day to start writing again. Lot has happened in last 5 months - in particular release of Animal Spirits with Fed starting interest rate reduction cycle and historic victory of President Trump for 2nd term. As the year turns into 2025 and stock markets at all time high, one would wonder, what's next?  To answer this, one needs to look back at 1920s and 1990s to give us some context on where markets may be headed. 1920s saw invention of televisions, radio, wider adoption of cars, vacuums, penicillin and many other which we consider household items now. These inventions created roaring 20s with markets going up by 500% eventually leading to crash of 1929. However during mid-20s, markets keep going up due to excitement of these inventions and end of World War-1 and Spanish Flu Pandemic. 1990s also saw many inventions - the key being launch of Netscape in 1...

And the Oscar goes to...

It's Oscar Sunday and time for predictions for few categories - before I digress into talking about drama in DC or markets.  First of all, I want to recognize the damage LA fires have done to the beloved areas of Los Angeles and impacted families across all spectrums. My heart goes out to them and wish them recovery and rebuilding of their lives... This year's Oscar nominees and post nomination period had been interesting to say the least. Due to this, the field is wide open in almost all categories and that's what makes prediction game so interesting. Just to set expectations, I would consider a win if I get even 50% predictions correct given the dynamics of nominees this year. So here are my predictions - "And the Oscar goes to..." Best Picture - Anora (surprise could be "The Brutalist") Best Director - Sean Baker for "Anora" (Surprise could be Brady Corbet for "The Brutalist") Best Actor - Adrien Brody for "The Brutalist"...

The Politics and Gamesmanship of TikTok!

TikTok is less than 3 hours from going dark on USA's east coast if TikTok owner Bytedance (and Chinese Government) follows thru its "bluff" to honor the law " Protecting Americans from Foreign Adversary Controlled Applications Act" which goes into effect on Jan 19, 2025. And suddenly there is lots of politics and gamesmanship around TikTok.. Let's look at the players and their positions US Congress: The " TikTok Ban" law was passed by congress with bipartisan support and coincidently it goes into effect one day before new administration takes charge. Everyone knew the exact date and time of oath taking ceremony of new President...but maybe the congress did not think that there would be change of President and did not bother to put effective date post new government taking charge...that created a window of 36 hours of "law being in effect" unless... President Biden: Biden himself did not think that he won't be President for 2nd term. S...