Latest Forum Topics / Venture Last:13.88 +0.02 | Post Reply |
How is Venture's prospects?
|
|
billywows
Elite |
16-Aug-2006 06:04
|
x 0
x 0 Alert Admin |
------------------------------------
Cowen & Co. initiates Dell at neutral, H-P at outperform
|
Useful To Me Not Useful To Me | |
billywows
Elite |
13-Aug-2006 21:52
|
x 0
x 0 Alert Admin |
Should be good news for Venture with below report .... But Hewlett-Packard (HPQ - news - Cramer's Take) may steal some retail thunder Wednesday. The computer giant will release its fiscal third-quarter results, and analysts are looking for a profit of 47 cents a share, before items. A year earlier, the company earned 36 cents a share. |
Useful To Me Not Useful To Me | |
|
|
billywows
Elite |
13-Aug-2006 12:44
|
x 0
x 0 Alert Admin |
HP is reporting earning next next Wednesday .... Venture should go up! ----------------------------------------- Enter turnaround prince Mark Hurd who took over from Carly Fiorina, the maligned architect of the Compaq deal, in April 2005. Hurd, who had a reputation as a master of cost cutting from his days as CEO of ATM maker NCR (Charts), quickly went to work to slash expenses at HP. Shortly after he was hired, the company announced it would to lay off 14,500 workers - or 10 percent of HP's workforce - in order to boost profits. Under Hurd, HP (Charts) has consistently exceeded earnings estimates, sending its stock up more than 50 percent since he joined the company. But it's not all about cutting costs. In late July, HP said it would spend $4.5 billion to snap up Mercury Interactive, which makes software that helps businesses install and manage their applications over networks. Software is a small, but rapidly growing, business for HP. HP also has gained ground in the PC market share battle and has taken advantage of problems facing its top rival, Dell. The company will report its fiscal third quarter on August 16. Analysts expect HP to post revenue of $21.8 billion and earnings per share of 47 cents. But can HP continue its remarkable string of surprises? |
Useful To Me Not Useful To Me | |
Nostradamus
Supreme |
07-Aug-2006 11:32
|
x 0
x 0 Alert Admin |
J.P. Morgan raised its December 2006 price target to $13 from $11.90, saying the stock looked attractive given the company's expected earnings growth. |
Useful To Me Not Useful To Me | |
tanglinboy
Elite |
07-Aug-2006 11:02
Yells: "hello!" |
x 0
x 0 Alert Admin |
wow... big jump in venture today! why? |
Useful To Me Not Useful To Me | |
|
|
Nostradamus
Supreme |
28-Jul-2006 10:15
|
x 2
x 0 Alert Admin |
And some negatives. Venture seems to have overpaid. The offer price of $1.25 values GES at a historical PER of 17.1x vs Venture's 13.80, based on $10.60 close. This is higher than GES peak (13-14x) valuations. The purchase consideration constitutes 37% of Venture's current market cap of $2.6b. However, based on calendarized 2005 numbers, GES is only 20% Venture's revenue, 25% of its net profit and 27% of its operating cashflow before working capital, interest and tax. Venture will probably have to borrow about $600m. At a interest rate of 3.6%, interest payments will come to $21.6m per year. And since the other $380m will halve its cash hoard, that would cost the company another around $24m in interest income per year. The acquisition terms also seem very generous. It's all cash, which doesn't tie down the vendors to Venture's prospects post-acquisition. There are no performance targets, which makes it even more risky that future performance may not live up to expectations. The acquisition is said to be earnings accretive, but this is because most of the acquisition cost is ignored. Nearly a billion dollars has left the company in return for assets which are likely to generate only some $50m in recurrent free cashflows in calendar year 2006. Pay back will come in 10 years or more. Goodwill comes up to $729m and assuming a 10-years amortization, the expense per year would come up to some $73m, more than wiping out GES' earnings contribution in 2006. Locally, mergers and acquisitions in the electronics industry have mostly failed miserably. Venture is no different, evident in previous acquisitions such as DMX, Scinetic and Univac. $1b is more than enough to start to build another Venture since the comapny's fixed assets, annual staff costs, R&D an other expenses come up to no more than $450m. In fact, with the $1b, Venture could very well offer superb terms to NCR, IBM and Micros to send business their way. With most of the global tech sector downgrading forecasts and warning on profit, it's highly likely that GES' earnings haved peaked in the current cycle. Synergies are marginal and risks are high. This acquisition is likely to underperform expectations in the medium term. Overall, I feel the negatives outweigh the positives. |
Useful To Me Not Useful To Me | |
teeth53
Supreme |
28-Jul-2006 09:36
Yells: "don't learn through life, learn to grow with life " |
x 0
x 0 Alert Admin |
Below $10 good for consolidation about M&. GES is good and not so good to Venture, predicting some comsolidation in coming mths and years on tech business and on tech stocks. |
Useful To Me Not Useful To Me | |
BullRun
Elite |
27-Jul-2006 22:05
|
x 0
x 0 Alert Admin |
Agree, if execute nicely there will be some positive effects. However, there is always risk with M&A of this size. |
Useful To Me Not Useful To Me | |
|
|
Nostradamus
Supreme |
27-Jul-2006 21:36
|
x 1
x 0 Alert Admin |
Some positive effects. The deal will add to forward EPS, although this is made possible only by an accounting rule change. There will be a likely return of growth rates to the high double digits, more differentiated products and better operating metrics. The deal is earnings accretive and should increase 2007 EPS by about 10%, assuming a financing mix of 60%/40% debt/cash. Gearing will rise but should remain manageable and preferable to new shares. Secondly, this is a sensible deal with better cash utilisation. |
Useful To Me Not Useful To Me | |
BullRun
Elite |
27-Jul-2006 13:20
|
x 0
x 0 Alert Admin |
Some analysts rated it sell and some rated a buy...who to believe? |
Useful To Me Not Useful To Me | |
Stockking
Master |
27-Jul-2006 10:00
|
x 0
x 0 Alert Admin |
The so call short term rebound seem to have ended!! I'll continue to avoid for the time being....negative respond for the M&A. |
Useful To Me Not Useful To Me | |
Stockking
Master |
18-Jul-2006 22:54
|
x 1
x 1 Alert Admin |
I'll continue to avoid for the time being.... |
Useful To Me Not Useful To Me | |
|
|
Nostradamus
Supreme |
18-Jul-2006 17:35
|
x 1
x 2 Alert Admin |
As expected, the $9.50 level held. Short-term rebound. |
Useful To Me Not Useful To Me | |
Stockking
Master |
17-Jul-2006 16:25
|
x 1
x 3 Alert Admin |
Better continue to avoid...... |
Useful To Me Not Useful To Me | |
singaporegal
Supreme |
17-Jul-2006 15:31
Yells: "Female TA nut" |
x 1
x 1 Alert Admin |
downtrending very badly... seems like quite a sustained one - from TA indicators. |
Useful To Me Not Useful To Me | |
derekchong
Veteran |
14-Jul-2006 11:38
|
x 0
x 0 Alert Admin |
last down $9.75. still heading down. |
Useful To Me Not Useful To Me | |
singaporegal
Supreme |
13-Jul-2006 20:58
Yells: "Female TA nut" |
x 0
x 0 Alert Admin |
Yup... Stokking is right. Its still downtrending... I will not be surprised to see it hit 9.8 levels also. |
Useful To Me Not Useful To Me | |
Stockking
Master |
13-Jul-2006 19:40
|
x 1
x 3 Alert Admin |
Better continue to avoid...... |
Useful To Me Not Useful To Me | |
tanglinboy
Elite |
13-Jul-2006 15:28
Yells: "hello!" |
x 0
x 1 Alert Admin |
thanks all of you. All of you very accurate. now Venture is below $10! |
Useful To Me Not Useful To Me | |
Nostradamus
Supreme |
05-Jul-2006 20:38
|
x 1
x 2 Alert Admin |
Hi tanglinboy, Don't look at the line chart. It shows the day's average price. Look at the bar or candlestick chart. Drag the cursor until the pink vertical line coincides with 13/6. From there, you can see the intra-day low is $9.50, which is also the 52-week low. |
Useful To Me Not Useful To Me |