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http://www.iphoneinchina.com/tag/china-unicom/
Over the past few months, China Unicom kiosks have been popping up in Carrefour (the French version of Walmart) and Best Buy locations all over the Mainland after China Unicom has made agreements with both companies to help promote and sell their 3G service. (Aug 2010)
Wow, what a terrific day going on here with QPSA!
Up big, volume big...I'm smilin' big, too.
MeePower has a big audience to go after......
http://www.bloomberg.com/news/2011-01-26/apple-s-stores-in-china-outsell-manhattan-s-fifth-avenue-cube-.html
Apple Stores in China Outsell Fifth Avenue as Nation Outgrows Gray Market
*China has Apple’s highest-grossing stores worldwide
*The four Apple stores in China generate, on average, the highest traffic and highest revenue of any company stores in the world
*Apple will more than triple sales in China this year to $9.4 billion from $2.9 billion last year, Huberty wrote. Sales may reach $15.2 billion in 2012, she estimated.
Nice....great PR.
http://www.zacks.com/research/get_news.php?id=024l8642
Spreadtrum Communications (NASDAQ:SPRD) had year-over-year sales growth of 150.7% during the last quarter. The company has reported $262 million in sales over the past 12 months and is expected to report $480.7 million in sales in the next fiscal year.
I think so, too, for anyone that's wanted in on a dip.... today they can get in on a drop!
Yeah, fallout from FFIV is what I read on yahoo board. Sure stinks up the place today.
This is great, IMO....about time!
Where did you learn that the shorts have to cover because of an uplisting? Not saying you're wrong....just never knew that to be the case.
That's great news...
Beginning with the opening of the market on Friday, January 21, 2011 , Quepasa's common stock will commence trading on the NYSE Amex under the symbol "QPSA."
LONDON--(BUSINESS WIRE)-- Rackspace® Hosting (NYSE:RAX - News), the world leader in the hosting and cloud computing industry, today announced the launch of its cloud infrastructure to provide customers with a European based infrastructure for their cloud-based data footprint.
“Our US-based Rackspace cloud has already been hugely successful, with over 100,000 customers globally now taking advantage of our hosted cloud services,” said Lanham Napier, President and CEO, Rackspace. “Due to storage regulations set out under European law, many UK companies are restricted from using cloud. Our UK offering allows companies to avoid offshore data issues and weighty upfront capital investments which helps them become more strategically agile from a business perspective. We’re delighted to launch our UK cloud today and we already have over 500 customers in beta.”
The new UK cloud offerings include Rackspace Cloud Files, running on OpenStack™ Object Storage, and Cloud Servers, based on the Xen hypervisor. The new cloud platform joins the dedicated hosting platform already offered in EMEA.
Rackspace Cloud Files provides instantly scalable cloud-based storage, which is ideal for electronically storing items like backups, video files, or static user content. Rackspace opened its source code for Cloud Files to the public through the OpenStack™ project, an open source cloud computing project founded by Rackspace in July 2010. The OpenStack project was initiated to drive open cloud standards, so customers would not be locked into proprietary cloud software.
Rackspace Cloud Servers provide instant computing power, allowing customers to serve applications with flexibility and efficiency. Customers are able to deploy one or even dozens of cloud servers instantly, for as long or as little as they are required. Available in Windows and a variety of Linux distributions, Cloud Servers gives users full root access and control over their servers through either the Rackspace Cloud control panel, the Application Programming Interface (API), third party tools or Rackspace’s newly acquired Cloudkick subsidiary. Rackspace has already fully integrated the Cloudkick panel into the UK cloud offering so users can manage both US and UK cloud servers from one panel.
“Some industry analysts have stated that by 2012, 20% of organisations will no longer own an in- house IT infrastructure,” continued Napier. “Cloud computing enables this evolution in a cost- effective way; if customers on the cloud no longer need resources, they stop using them and almost immediately stop paying for them. This will be critical to companies still fighting to cut costs from their budgets, and will allow them to control spending more tightly than ever before. It is as a result of direct feedback from our existing and prospective customer base in Europe that we have brought the Rackspace cloud to Europe and built it out in our UK data centre. The Rackspace European cloud brings with it reduced latency for those customers and helps eradicate concerns over currency fluctuations and European data legislation compliance.”
“Running our own servers proved inefficient and costly. With Rackspace, our resources are freed up from managing hardware and we are now better equipped to cater to spikes in demand online,” said Ivan Retzignac, Founder at MedicAnimal.com. “We are also saving in excess of £100,000 a year, which can be invested in better services and solutions for our customers.”
http://finance.yahoo.com/news/Rackspace-Launches-Cloud-bw-407469970.html?x=0&.v=1
Spreadtrum Communications, Inc. (Nasdaq: SPRD; "Spreadtrum" or the "Company"), a leading fabless semiconductor provider in China with advanced technology in both 2G and 3G wireless communications standards, today announced the world's first 40nm low power TD-HSPA/TD-SCDMA multi-mode communication baseband processor, the SC8800G. The new product was announced during a technology forum jointly held by Spreadtrum, China Semiconductor Industry Association, Qingdao Hisense Communication Co., Ltd., Huawei Device Co., Ltd. and Shenyang New Postcom Equipment Co., Ltd. at the Great Hall of the People, Beijing, China. At the forum, Spreadtrum successfully demonstrated its latest commercial mobile handsets based on the SC8800G.
Designed with 40nm CMOS silicon technology, the SC8800G achieves groundbreaking levels of performance and integration while simultaneously reducing power consumption, lowering overall costs and meeting the need for next generation communication experience. Spreadtrum SC8800G enables TD-HSUPA, TD-SCDMA, GSM, GPRS and EDGE operation and supports TD-HSDPA at 2.8Mbps, TD-HSUPA at 2.2Mbps. This product will enable the price of TD-SCDMA mobile terminals to be close to that of 2.5G products. At the same time, it will offer a reliable platform for various 3G services and will play an integral role in driving the development of TD-SCDMA, TD-LTE and 4G technology. The TD-HSPA/TD-SCDMA multi-mode mobile phones developed based on SC8800G have already passed the network access testing of Telecommunication Bureau of Ministry of Industry and Information Technology and the market entry testing of China Mobile, meeting all commercial standards.
SC8800G achieves great speed advancement while significantly reducing power consumption. The chip is an ideal solution for customers to develop competitive low power consumption mobile handsets. Furthermore, this world's first commercial 40nm low power TD-HSPA/TD-SCDMA multi-mode communication baseband processor will contribute to the development of Intelligent City, Internet of Things, Mobile Internet and the integration of telecommunications networks, cable TV networks and Computer network in China.
Dr. Leo Li, Spreadtrum's President and CEO said, "As the inventor of the world's first commercial 40nm low power TD-HSPA/TD-SCDMA multi-mode communication baseband processor, we are proud of our cutting-edge technology in 3G communication standards, our design capability in advanced technology and our world-class engineering team. The commercial TD-HSPA/TD-SCDMA mobile phones developed based on the SC8800G are representative of the progression from 'made in China' to 'invented in China'. China's IC design companies are presented with tremendous opportunities as the country undergoes a major upgrade in industry and economy development. Spreadtrum is dedicated to the continuous technology innovation in order to capitalize on these opportunities and play an instrumental role in the growth of China's IC industry."
http://phx.corporate-ir.net/phoenix.zhtml?c=212408&p=irol-newsArticle&ID=1517104&highlight=
Nice find....sure looks like it. Neat looking design, too.
You'd have recognized it by this, posted yesterday on IV....funny : "Nokia Reviewing Play Book For Thursday"
http://www.investorvillage.com/smbd.asp?mb=65&mn=44773&pt=msg&mid=9978305
NukeJohn, IQ, quilix, Monterey and others who attended CAFC hearing and reported to the IDCC boards....... a million thank you's.
Regarding IQ's comment, "Two of the judges (Bryson and Newman) were very attentive and asked lots of good questions that got right to the point. The third judge (Mayer) acted fairly disinterested and never spoke a word and didn't really take any notes."
Here is a comment from NJ on the IV board this morning:
Msg 44859 of 44979 at 1/13/2011 12:18:35 PM by
NukeJohn
The following message was updated on 1/13/2011 12:26:54 PM.
Re: Excellent panel
Wxman,
I completely agree. These are three veteran judges that have always tended to side with the patent holder and punish infringers. I especially liked Newman in virtually every case I followed her decisions and logic. When she dissented in the KSM case it was to give district court judges more power to rule via summary judgments on BS delay workaround attempts.
Mayer hardly ever says a word, but his rulings (like the TiVo case) show that he has no sympathy for infringers I'm not sure what Scruffy is referring to about Mayer's comments in the Rambus case, because I was at that Rambus spoliation appeal in the May and Mayer didn't ask a single question. He sat on the panel in the Micron case and then recused himself in the Hynix Case (and subsequently recused himself in the Micronv Rambus case). Mayer tends to write tough decisions that punish infringers, as does Bryson (although it's been a while since I followed any of his cases).
There were three judges I was concerned about being on the panel (I'm not going to say which three)....but none of them are on the panel so it doesn't really matter.
We have three honest, experienced, conservative judges who will do the right thing.
JMHO,
NJ
Pretty sure the poster named 'Litigation Guru' was at the hearing. I agree, action looks better than 50/50 odds.
"Hearing Over
Too close to call, 50/50 with perhaps slight edge to IDCC. Bryson slightly favors IDCC, Newman tough to say, Mayer silent. EOM"
Msg 44890 of 44898 at 1/13/2011 2:41:31 PM by Litigation Guru
http://www.investorvillage.com/smbd.asp?mb=65&mn=44890&pt=msg&mid=9984412
WILLIAM C. BRYSON was appointed by President William J. Clinton in 1994. Prior to his appointment, Judge Bryson was with the United States Department of Justice from 1978 to 1994. During that period, he served as an Assistant to the Solicitor General [1978-79], Chief of the Appellate Section of the Criminal Division [1979-83], Counsel to the Organized Crime and Racketeering Section [1983-86], Deputy Solicitor General [1986-94], Acting Solicitor General [1989 and 1993], and Acting Associate Attorney General [1994]. He was an Associate at the Washington, DC law firm of Miller, Cassidy, Larroca and Lewin from 1975 to 1978. Judge Bryson served as Law Clerk to the Honorable Henry J. Friendly, United States Court of Appeals for the Second Circuit from 1973 to 1974, and as Law Clerk to the Honorable Thurgood Marshall, Supreme Court of the United States, from 1974 to 1975. Judge Bryson received an A.B. from Harvard College in 1969 and a J.D. from the University of Texas School of Law in 1973.
PAULINE NEWMAN was appointed by President Ronald Reagan in 1984. From 1982 to 1984, Judge Newman was Special Adviser to the United States Delegation to the Diplomatic Conference on the Revision of the Paris Convention for the Protection of Industrial Property. She served on the advisory committee to the Domestic Policy Review of Industrial Innovation from 1978 to 1979 and on the State Department Advisory Committee on International Intellectual Property from 1974 to 1984. From 1969 to 1984, Judge Newman served as director, Patent, Trademark and Licensing Department, FMC Corp. From 1961 to 1962 she worked for the United Nations Educational, Scientific and Cultural Organization as a science policy specialist in the Department of Natural Resources. She served as patent attorney and house counsel of FMC Corp. from 1954 to 1969 and as research scientist, American Cyanamid Co. from 1951 to 1954. Judge Newman received a B.A. from Vassar College in 1947, an M.A. from Columbia University in 1948, a Ph.D. from Yale University in 1952 and an LL.B. from New York University School of Law in 1958.
HALDANE ROBERT MAYER has been a member of the court since 1987. He served as Chief Judge from 1997 to 2004. Born in Buffalo, Judge Mayer was educated in the public schools of Lockport, New York, before attending the United States Military Academy at West Point, from which he graduated with a Bachelor of Science degree in 1963. He earned a law degree in 1971 at the Marshall-Wythe School of Law of The College of William and Mary, where he was editor-in-chief of the William and Mary Law Review as well as a member of Omicron Delta Kappa National Leadership Society. He has served as a director of the William and Mary Law School Association.
Judge Mayer served on active duty in the Army of the United States from 1963 until 1975 in the Infantry and the Judge Advocate General's Corps. He was awarded the Bronze Star Medal, the Meritorious Service Medal, the Army Commendation Medal with Oak Leaf Cluster, the Combat Infantryman Badge, Parachutist Badge, Ranger Tab, RVN Ranger Combat Badge, and several campaign and service ribbons. He resigned his Regular Army commission to take an Army Reserve commission, retiring in 1985 as a lieutenant colonel.
In 1971, Judge Mayer served as a law clerk for Judge John D. Butzner, Jr., of the United States Court of Appeals for the Fourth Circuit in Richmond, Virginia. He practiced law in Charlottesville, Virginia, in the mid-1970’s, simultaneously serving as an adjunct at the University of Virginia School of Law, as he did again in the 1990’s. He has also been an adjunct at George Washington University National Law Center.
From 1977 through 1980, Judge Mayer was the Special Assistant to the Chief Justice of the United States, Warren E. Burger, after which he returned to private law practice in Washington, D.C., until he became Deputy and Acting Special Counsel (by designation of the President).
President Ronald Reagan appointed Judge Mayer to what is now the United States Court of Federal Claims in 1982, and to the United States Court of Appeals for the Federal Circuit in 1987. He assumed senior status on June 30, 2010.
True...it also helps to re-read this now and then... :)
http://www.hcinternational.net/pdf/client_overviews/NEWN/NEWN_Profile.pdf
Wow, just checked in on RAX....even made it over $34 today. Great stuff...... :)
berkstump2's post on IV board...good thread over there on IV:
"The Twilight Zone: "Occam's razor." First Episode (Screenwriting credits to Postyle)
Much thanks to Postyle for the links to the different ways that a
"Capture the Dividend" strategy can be assembled.
[Sidebar- I consider Postyle to be this Board's version of Sgt. Friday:
"Just the facts, Ma'am."]
Before I move into the heart of this post, I want to point out one thing-
The use of the "Buy/Write to risk-mitigate dividend-capture is linked
to a "Delta Neutral " strategy. The DITM Call strikes have a delta of 1.00 --
for every dollar of change in the PPS, the value of the DITM Call changes
by one dollar.
So, you get a quick view of just how important "delta" can become in options
strategizing. (And we won't even go near the subject of "gamma" players.).
Ready?
Let's hit it.
Some five years ago, when the Clan of The Cave Stock had retreated to their
caves after a Monday of the Living Dead, I struck out for other territories.
I ended up becoming very familiar with the perambulations of one John Fredriksen (JF),
a reincarnated, modern day Viking who had assembled quite a fleet of oil tankers.
And quite a roster of very intelligent men who were equally brainy and pillage-enabled.
Putting all his derring-do aside, JF got his CEO pay from stock dividends only.
Stop the truck for one moment and go back and read that last sentence, again.
Consequently his major company of that period, Frontline (FRO) was very "Shareholder Friendly."
And growing like all get-out.
It was wonderful to tune in to the FRO MB'ers and listen to all their different ways to negotiate how
to maximize their portfolios when a "divident" period was upon them.
We are talking a quarterly dividend of a minimum of $1.00 ( and quite ofter larger) with a PPS running
in the $30 to $50 range.
And here's the bottom line of this story-
Not once, not once did FRO see a one day Options volume of this magnitude. Not at any point throughout
the years that I watched it daily.
Now, if there ever was a stock to go out and play a Buy/Write "Capture the Dividend" strategy, then
FRO was the Playboy Bunny of the Decade.
But on a play on IDCC , for billions of dollars, that is targeted to capture what ,"$0.10 per share?
There are tons of other companies out there, paying larger dividends, that could be run through a computer-generated
diagnosis schedule for maximizing "Dividend Capture."
( In fact, it's so darn easy that there are Mutual funds out there devoted to nothing else but "Buy/Writes")
And if this friggen monster play is indeed solely a $0.10 "Dividend Capture", then we should be scared out of our
wits.
Because Wall Street is willing and able to massively manipulate IDCC PPSand trading at any time for as little as $0.10.
Are we willing to even spell: "Influence"?
Intermission
Something else about Friday's "Day of the Locusts" has been bugging me all day.
And I finally keyed into it.
The idea that Nokia was behind it was real cool. Almost the financial equivalent of an Ernst Blofeld operation.
Unfortunately, I can't buy into it for reasons already stated.
Yes, Nokia knows what is at stake here.
But, but, but, if NJ's numbers are any indicator of unrealized value, then there are other knowledgable companies out there
that might love to gobble up a large chunk, if not all of IDCC. And they are not "insiders", at least for now.
So, how would a potential acquirer launch a War of Stealth and capture a large enough percentage of the IDCC float
to create an "acquisition friendly" environment?
Now, as I am a bona fide fan of watching our own private Sgt. Friday post his findings, here's the teaser thought:
"Total Equity Swap"
(think Volkswagen/ Porsche)
"Truth is stranger than fiction"
Verizon Event Set for Tuesday–iPhone Time
http://digitaldaily.allthingsd.com/20110107/the-verizon-iphone-cometh-verizon-announces-jan-11-event/
Nope, no trouble viewing embedded IHub videos for me. That one was a classic laugh-riot.
SAN FRANCISCO (AP) -- With so many investors becoming fans of the company, Facebook will be legally required to begin sharing more information about its finances and strategy by April 2012, according to documents distributed to prospective shareholders.
Some of the numbers that began trickling out Thursday were eye-popping -- most notably a net profit margin of nearly 30 percent, much higher than most people had previously speculated.
The owner of the world's largest Internet social network, privately held since it started in a Harvard University dorm room seven years ago, will be forced to open its books because it expects to have more than 500 shareholders at some point this year, according to a person who has reviewed the documents handed out Thursday. The person asked not to be identified because the documents are only being given to an elite group selected to buy a stake in Facebook through a fund packaged by the company's newest investor, Goldman Sachs Group Inc.
Surpassing 500 shareholders will catapult Facebook over a hurdle likely to lead to the company's long-awaited initial public offering of stock next year.
After a company with at least $10 million in assets has more than 500 shareholders, the Securities and Exchange Commission requires it to disclose its financial results and other details on a quarterly basis in an effort to ensure investors are adequately informed. The reporting requirement kicks in 120 days after the fiscal year in which a company exceeds the shareholder threshold for the first time.
Facebook's fiscal year ends Dec. 31, meaning it would have until late April 2012 to comply.
The company, now based in Palo Alto, could still retain a private ownership structure, but an IPO is the more probable scenario given Facebook will have to make many of the same disclosures of a publicly traded company anyway.
But Facebook founder Mark Zuckerberg, 26, has been in no hurry to take the company public, partly because he hoped to preserve a free-wheeling culture. Some analysts also think Zuckerberg, named Time magazine's person of the year for 2010, wanted to avoid the public limelight so he would have more time to mature as a leader.
To help keep the company private, Facebook sought and received an SEC exemption in 2008 that assured employees who received a class of stock wouldn't be counted toward the 500-shareholder barrier. The stock awarded those employees won't be issued until an IPO or sale of the company occurs, another factor that will pressure Zuckerberg to drop his resistance to an IPO. Zuckerberg owns about a 25 percent stake in Facebook.
Facebook spokesman Jonathan Thaw declined to comment Thursday.
Crossing the 500-shareholder barrier prompted Google to pursue its IPO in 2004 before the Internet search leader had turned six years old.
If Facebook follows a similar timeline as Google did, its IPO would probably occur during the summer of 2012.
Some of Facebook's financial information is being shared for the first time as part of the exclusive stock offering that Goldman Sachs put together in an effort to raise $1.5 billion. The minimum investment in the fund is $2 million, although some exceptions are being made for Goldman's own partners.
Some of the numbers emerging in the limited stock offering help explain why Goldman Sachs itself decided to ante up $450 million for a less than 1 percent stake in Facebook earlier this week. The investment valued Facebook at $50 billion, more than twice the current market value of Internet pioneer Yahoo Inc.
Through the first nine months of last year, Facebook earned $355 million on revenue of $1.2 billion, according to the person who reviewed the offering document. That 30 percent profit margin is in the same range as that enjoyed by Google, which posted net income of nearly $6 billion on revenue of $29.9 billion through the first nine months of 2010. Facebook produced a similar profit margin in 2009, too, with net income of $220 million on revenue of $777 million, according to the person who had seen the Goldman Sachs documents.
Like Google, Facebook is making most of its money so far by selling advertising. Facebook has emerged as a marketing magnet because it now has more than 500 million users worldwide, and the company knows a lot about them because its audience shares so much information about their interests on the website. More than 30 billion links, notes, photos and other types of content get posted on Facebook each month.
As impressive as Facebook's growth has been, just how much the business is worth remains a hotly debated topic.
The $50 billion market value implied in Goldman Sachs' investment is 25 times higher than the $2 billion in revenue that analysts believe the company had last year. Google, the Internet's biggest moneymaker so far, ended Thursday with a market value of $196 billion, about seven times its annual revenue
http://finance.yahoo.com/news/SEC-rule-likely-to-trigger-apf-2506450163.html?x=0&sec=topStories&pos=2&asset=&ccode=
Yeah, a real momentum shift for the time being. Oh well.
In August you thought "i think you'll be able to buy this below 2.50 when some stock gets freed up later this year. No rush here."
With BIHI's steady climb and holding in the $8 range, how likely do you think it is that the price will go that low? I'm thinking $4, but all I'm doing is guessing. I'd put more faith in your guess!
Social Media: Next Dot-Com Bubble?
http://finance.yahoo.com/news/Social-Media-Next-DotCom-tsmf-2816666227.html?x=0&sec=topStories&pos=8&asset=&ccode=
"So, how much is Facebook's network of users really worth? The potential is clear -- when so many people are gathered in one (virtual) place, offering so much personal information about themselves, they create an unprecedented platform for targeted advertising. Or they would, if they were on the network to shop. When eBay and Amazon suggest products to their customers, they're talking to people who've already proven that they're interested in buying similar products. People go on Facebook for a variety of reasons -- to catch up with old friends, share pictures, make new acquaintances, and talk, sometimes endlessly, about themselves. Whether they'll appreciate having their virtual conversations interrupted by advertising, targeted or not, remains unclear."
--------------
"What is clear is that Goldman Sachs has a significant interest in Facebook's financial value, at least for the short term. Goldman Sachs' decision to invest heavily in Facebook has had some interesting repercussions. For one thing, the investment has allowed Facebook an opportunity to postpone issuing an IPO. That means that, at least for the moment, Facebook doesn't yet have to disclose its finances or publicly address investor complaints.
The company's private status may be short-lived, though. The SEC is investigating the secondary market for social media investments, and is reportedly looking at whether Facebook has exceeded the 499-investor threshold for public disclosure. Goldman Sachs reportedly intends to establish a special investment fund that would allow its customers to invest up to $1.5 billion more in Facebook. If the SEC concludes that the fund was created solely to avoid its public disclosure rules, it may choose to look through the fund and force Facebook to go public."
Well, will be interesting to see if there's any MeePower news out of CES starting tomorrow. NEWN needs some kind of jump start here.
What a great day or two or three+ we're having.
There's likely some PR's/announcements that will come out of CES....and we'll never look back at the 'old' IDCC.
That S1 is taking a long time to be designated "effective". I've reviewed the BIHI presentation at the micro-cap conference a few times, and I want in this thing! Let's get some shares in to the marketplace... :)
"fake out to $8 because of low volume"
I'm not a chartist either, but volume was great today at 382216, wasn't it?
And from nasdaq site here's volume last week (holidays).
Date Open High Low Close/Last Volume
12/31/2010 7.79 7.88 7.70 7.73 156,861
12/30/2010 7.58 7.75 7.56 7.72 146,922
12/29/2010 7.56 7.59 7.48 7.55 137,233
12/28/2010 7.50 7.57 7.45 7.48 112,449
How's that stop loss working for you? Did you buy again?
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=54636277
Sure is....all my stocks look great in this first hour or so of the new year's trading.
Thanks for sharing that. I wasn't aware, and glad to know.
Oh, well then I went to the wrong article because in the translation of the one I linked it says the D7.
Nice review. I'd be interested to know if you ever come across an article that indicates how well this MeePower M400D7 is selling, or if stores are back-ordered, etc. Thank you.
Here's a rough translation for smartscoops article:
http://translate.google.com/translate?hl=en&sl=zh-CN&u=http://roll.sohu.com/20101231/n301645625.shtml&ei=q_AdTebWC4SssAOlrenRAg&sa=X&oi=translate&ct=result&resnum=6&ved=0CEMQ7gEwBQ&prev=/search%3Fq%3Denet.com.cn%2B%252B%2Bmeepower%26hl%3Den%26prmd%3Divns
Tech Trader Daily....Smith Micro: Charging Into 4G
News, analysis, and actionable investing ideas.
DECEMBER 30, 2010, 5:38 PM ET
Smith Micro: Charging Into 4G
By Tiernan Ray
Interesting chat this afternoon with Tom Matthews, the head of strategy for Smith Micro (SMSI), a 27-year-old company that’s had a rather remarkable series of transformations.
Old fogies may or may not know the company as a provider of fax (what’s that?) software in the ’80s. Then the company got into providing connectivity software to the PC in the days of the 56-kilobit-per-second modem (what’s that?). Children of the PC era may or may not know Smith M. as the makers of Stuffit, a popular zip/compression utility.
Nowadays, Smith Micro is more known for connectivity software of various stripes, which make up 70% of company revenue. 85% of that is for PCs and Macs, but the rest is for the emerging world of smartphones. Smith Micro licenses its software to carriers — Verizon Communications (VZ) is a big customer — to authenticate cell phone users when they connect for wireless data services. It also licenses to handset makers: HTC uses the device management software from Smith Micro on its EVO phone for Sprint-Nextel (S). Sprint uses them to provide their visual voicemail equivalent to EVO users.
Matthews sees all kinds of room for expansion in the move to 4G wireless networks. Homes may become an opportunity, as carriers look to peddle faster wireless instead of wireline broadband. In public places, 4G could replace WiFi, and if so, carriers might need the company’s software to manage the turning on and turning off of transient users as they sign up for day passes, monthly usage, etc.
More tantalizingly, Matthews can imagine a world, several years off, when a customer buys a bucket of minutes that are not tied to any one device, per se, but can be shared among devices, much like todays “MyFi” hotspots. That might require the company’s software to manage multiple devices attempting to access a single account.
I know you’re thinking it, and so am I: the age of handsets and tablets becoming completely unhinged from the contract, like in home networking, is upon us. Matthews won’t commit to any such thing, and it’s not his call to make, but it sure sounds like that.
I should note that Lawrence Harris of C.L. King today had a fairly bullish note on Smith Micro — it’s an an “Accumulate” rating, so it’s not a raging buy, but better than a Hold, I would guess — and an $18 price target. He notes lots of intriguing things coming in 4G at CES next week, as I mentioned in another post.
Harris doesn’t say that SMSI will be on those devices, but he seems to imply as much. Should be interesting to see.
Smith Micro shares today closed up 26 cents, or 1.7%, at $15.83.
http://blogs.barrons.com/techtraderdaily/2010/12/30/smith-micro-charging-ahead-into-4g/?utm_source=feedburner
Will Rackspace Hosting Outperform in 2011?
http://www.fool.com/investing/general/2010/12/29/will-rackspace-hosting-outperform-in-2011.aspx
Revenue estimate 2011: $941.9 million; 2012:1,141 million
Normalized profit per share estimate 2011: $0.54; 2012 $0.84
"...Rackspace isn't cheap, but financially it's delivering exactly what I expected when I first named the stock to our Motley Fool Rule Breakers scorecard. Specifically, an increasing number of low-cost cloud computing accounts is helping Rackspace squeeze more revenue out of each server, leading to progressively higher returns on capital. I'm expecting this trend to continue, and the stock to keep moving higher as a result."
Thanks for the links in both of your posts. Good stuff.