Bought 1 block of TSO at 73.36
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Ruthless trader
- Thread starter Jack Haddad MD
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Bought 2 blocks of eBAY at 27.61 and wrote 200 July 27.50 calls for 1.40/contract
Bought 1 block of TSO at 72.72
Bought 1 block of AMD at 22.71
Quote from Jack Haddad, MD:
Bought 5 blocks at 14.62, and wrote the 500 July 15 calls for .20/contract.
Outstanding fourth quarter results provided Oracle with some justification for the flurry of acquisitions completed over the past 18 months. Revenue increased 25%, including a 32% rise in the new software license category. Much of the 83% increase in application license revenue was due to the Siebel acquisition, but organic growth of 56% was impressive also. Oracle generated $4.2 billion of free cash flow in fiscal 2006, nearly a 30% increase versus last year. Similar to last year, Oracle spent significant working capital in the fourth quarter. Yet because working capital was a generator of cash in the first nine months of the year, working capital usage for the full year was negligible. Since Oracle does not pay a dividend and capital expenditures are modest ($241 million), virtually all of cash from operations becomes free cash flow. Share repurchases totaled $2.1 billion in fiscal 2006. This was a substantial increase compared to the $1.3 billion in fiscal 2005. Moreover, the company intends to buy back $1 billion of stock in each quarter for fiscal 2007. While $4 billion in annual share repurchases is substantial, our concerns are mitigated by our estimate for free cash flow of nearly $5.6 billion.
Oracle is also stealing market share from SAP in applications, IBM in database, and BEA in middleware. Theyre doing that by emphasizing technological advantages.
Sold 5 blocks of ORCL at 14.91, and bought back 500 July 15 calls at .25/contract. Net gain was .25/cents per share on 50,000 shares.
Yesterday's warning issued by AMD is evidence of INTC's price war!
In the June quarter, checks point to factual data that Intel has been gaining in the desktop and notebook segments, owed to aggressive pricing incentives. As a result, analysts from Bank of America and UBS speculate that revenue, which in April Intel forecast would be from $8 billion to $8.6 billion, has been steadied by sales to APPL-- which recently began using Intel processors in many of the machines it sells.
Chip buyers, knowing that lower-priced wares will soon be available, are logically refraining from buying AMD chips now, in anticipation of going on a low-priced buying spree in a few weeks.
AS this price war intensifies, I believe Intel has the advantage over AMD. Clearly, INTC is standing on the taller pile of cash, and holds the commanding heights in profitability. Therefore, it can cut steeper in prices should it needs to. AS this battle prolongs, AMD's cash will dwindle.
In the June quarter, checks point to factual data that Intel has been gaining in the desktop and notebook segments, owed to aggressive pricing incentives. As a result, analysts from Bank of America and UBS speculate that revenue, which in April Intel forecast would be from $8 billion to $8.6 billion, has been steadied by sales to APPL-- which recently began using Intel processors in many of the machines it sells.
Chip buyers, knowing that lower-priced wares will soon be available, are logically refraining from buying AMD chips now, in anticipation of going on a low-priced buying spree in a few weeks.
AS this price war intensifies, I believe Intel has the advantage over AMD. Clearly, INTC is standing on the taller pile of cash, and holds the commanding heights in profitability. Therefore, it can cut steeper in prices should it needs to. AS this battle prolongs, AMD's cash will dwindle.
Joe Osha, a colleague from Merrill Lynch, said the following in a letter to clients, "we expect Intel to begin taking share in desktop while defending its dominant position in mobile. The next big competitive inflection point for AMD is mid-2007, when AMD launches its first real mobile processor architecture. Until then, it looks like quite a fight between the two processor companies., with rapidly expanding manufacturing capacity at AMD to boot.â Osha kept his rating at âneutral.â
Bank of Americaâs Sumit Dhanda: âVarious factors lead us to believe that the [worst] may not yet be behind for AMD. Specifically, we believe that 1) a continued deterioraton in AMD channel inventory, 2) difficult comps heading into Q3, which will revert back to a normal 13-week quarter, 3) margin impact from late quarter price cuts, which will be felt almost entirely in Q3, 4)strong likelihood of share loss to Intel in [the second hald], and 5)an elevated cost structure heading into â07, will result in further downward adjustments to AMDâs consensus forecast.â Dhanda cut his price target on the stock to $20, from $34, maintained a neutral rating and asserted that the valuation is âunattractive.â
Bank of Americaâs Sumit Dhanda: âVarious factors lead us to believe that the [worst] may not yet be behind for AMD. Specifically, we believe that 1) a continued deterioraton in AMD channel inventory, 2) difficult comps heading into Q3, which will revert back to a normal 13-week quarter, 3) margin impact from late quarter price cuts, which will be felt almost entirely in Q3, 4)strong likelihood of share loss to Intel in [the second hald], and 5)an elevated cost structure heading into â07, will result in further downward adjustments to AMDâs consensus forecast.â Dhanda cut his price target on the stock to $20, from $34, maintained a neutral rating and asserted that the valuation is âunattractive.â
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