- This topic has 24 replies, 6 voices, and was last updated 8 years, 10 months ago by
Coronita.
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May 27, 2015 at 4:41 PM #786719May 27, 2015 at 4:48 PM #786723
spdrun
ParticipantNo oil, and I don’t buy index funds, but I’ve beat the indices in the stocks that I did buy after the lovely near-20% nosedive of fall 2011. Bought SPWR when it was below 10, and American Airlines when everyone said it was fucked. THAT’s some blood for y’all.
May 27, 2015 at 5:04 PM #786726an
Participant[quote=spdrun]No oil, and I don’t buy index funds, but I’ve beat the indices in the stocks that I did buy after the lovely near-20% nosedive of fall 2011. Bought SPWR when it was below 10, and American Airlines when everyone said it was fucked. THAT’s some blood for y’all.[/quote]
Good for you. You must be filthy rich by now with those buys.May 30, 2015 at 7:54 PM #786849ltsddd
ParticipantAnyone else here seeing the similarity between the “irrational exuberance” of the stock market, recent/current IPOs and mergers & acquisitions to those leading up to the major market corrections in 2001 & 2002?
Stock prices may have been reacting positively to these news. However, my interpretation of these M&A is that these companies probably realized there’s little or no growth in the near future and are using M&A as a way to create more value (read stock prices).
Out of curiosity, I searched it up and I found this site that shows 7 out of 10 largest M&A transaction worldwide occurred in 1999 & 2000.
http://www.imaa-institute.org/statistics-mergers-acquisitions.html#MergersAcquisitions_United States of America
Are we closer to a serious correction in the stock market?
May 30, 2015 at 8:43 PM #786850CoronitaParticipant[quote=ltsdd]Anyone else here seeing the similarity between the “irrational exuberance” of the stock market, recent/current IPOs and mergers & acquisitions to those leading up to the major market corrections in 2001 & 2002?
Stock prices may have been reacting positively to these news. However, my interpretation of these M&A is that these companies probably realized there’s little or no growth in the near future and are using M&A as a way to create more value (read stock prices).
Out of curiosity, I searched it up and I found this site that shows 7 out of 10 largest M&A transaction worldwide occurred in 1999 & 2000.
http://www.imaa-institute.org/statistics-mergers-acquisitions.html#MergersAcquisitions_United States of America
Are we closer to a serious correction in the stock market?[/quote]
At least in the semiconductor industry, consolidation is occurring out of a need to survive…It’s the way business is being done. The big buyers are OEMs and the larger companies have been bundling their offerings, and this makes it difficult for smaller players that don’t have a complete solution. Also, there is ever increasing pressure from the new players from asia, that is pushing prices and margins down.
Qualcomm is trouble too. That Samsung Galaxy S6 loss broke up their bundled offering at tier 1 OEMs, and allowed other players back in. And that might not be temporary, as Samsung starts building their own chips in other areas as well. Because Samsung can.
In China, the chinese chip companies have not caught up..yet.. But that gap is closing as well, and closing pretty fast. Both Huawei and Xiaomi are both following Samsung’s playbook and planning to source their own chips as well, once they have learned from U.S. companies. Companies like MediaTek are also giving others a run for their money. And then there’s intel, that doesn’t mind taking losses on mobile to buy customers (at least not right now)…
A lot of these deal makings are probably also happening out of a need to appease shareholders. Earnings growth is not as fast as the street would like, so rather than focus on chip engineering, looks like financial engineering is more effective at boosting share price (at least in the short term)…
While the past few years have been a growth in hardware and chips, I think we’ve reached a saturation in which hardware is maturing.. Software and uses of all that shiny new hardware has not yet caught up. So, while growth in the hardware might be slowing down, it seems like growth in the software sector/applications is still strong….
May 30, 2015 at 10:24 PM #786853Participant[quote=flu]So, while growth in the hardware might be slowing down, it seems like growth in the software sector/applications is still strong….[/quote]That’s how it has been for a long time, software and hardware have been one upping each other. Right now, hardware is ahead of software, but I don’t think it will last for long. I think Windows 10 will be the catalyst to demand even faster hardware. With continuum, your phone will be able to replace a cheap laptop. Version 1, you can only run one app at a time in full screen. But my bet is that a few version later, it will be able to run multiple windows just like a regular desktop. Which would put a lot of stress on the hardware.
May 31, 2015 at 6:15 PM #786880ParticipantIt’s pretty much a done deal that intc will acquire altr. The $100B question is what’s qcom going to do? qcom seems too big to be acquired by another company and not nimble enough to expand by acquiring other companies. May be it’s time to split the Q up.
Possibly 5 years from now ilmn will be the talk of the town instead of qcom.
May 31, 2015 at 11:50 PM #786887ParticipantI agree, QCOM at its current state is too big to acquire. The only larger player who would even consider buying QCOM is INTC, but they’re not big enough still. I also agree that QCOM under current CEO doesn’t seem to have the mindset to grow through acquisition. Also, their portfolio is pretty well rounded anyways, so there’s really no reason to acquire anyone to plug any whole. So, the only way they can grow is organically. But it seems like they’re in a cutting mode instead of growing mode. If QCOM does split, I can totally see INTC gobbling up their modem/chip division. It would make perfect sense, but that might cause antitrust.
I agree that possibly, 5 years from now, ILMN will be the talk of the town instead of QCOM. Unless they do something big.
January 24, 2016 at 10:20 AM #793494ParticipantLooks like the layoffs at brcm has begun.
January 24, 2016 at 10:34 AM #793496CoronitaParticipant[quote=ltsdd]Looks like the layoffs at brcm has begun.[/quote]
Not according to my sources in SD. In fact, some say that got a pretty big bonus recently. Drat….I missed that. oh well. I am hearing engineering in SD won’t be that impacted, at least not initially..No official notice has been given out yet in the SD location, at least based on the colleagues I know that still work there, and I’ve asked a few of them.
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