Dell (DELL) lower as Acer-Gateway (GTW) deal is finalized originally appeared on BloggingStocks on Tue, 16 Oct 2007 11:51:00 EST. Please see our terms for use of feeds.

Critics believe that Acer is overpaying for Gateway, and also anticipate that the company will have trouble integrating the brand. But in an interview with the Financial Times, the usually soft-spoken Wang-Jen Tang defended the acquisition, saying that it was the company's best shot at achieving profitability in the North American markets -- Acer simply doesn't have strong brand recognition here, and Tang is hoping that the Gateway and eMachines brands will allow the company to lift its net margin in the US into the 2-3% range.

Only time will tell who is right, Tang of the market, which has spoken clearly about how it feels about the deal. But history has demonstrated amply that, the vast majority of the time, acquisitions fail to create value. If Tang is right, this will have to be the exception.

From an investor's perspective, Gateway shares are probably not worth buying, as some had suggested as recently as last week. Given that many observers feel Acer is overpaying, a competing bid seems unlikely to emerge. And what company would want to jump in when the company that just announced the deal has seen its stock hammered in the past week?

Acer CEO defends Gateway (GTW) acquisition originally appeared on BloggingStocks on Tue, 04 Sep 2007 18:45:00 EST. Please see our terms for use of feeds.

Dell, Inc. (NASDAQ: DELL) is set to release Q2 financial results tomorrow in what is probably one of the more highly anticipated earnings releases in quite a while. Just a few weeks ago, the company concluded its own internal financial investigation into possible financial shenanigans and the results included over $150 million in quarterly restatements stemming back to 2002. The official SEC investigation is not through yet.

Dell's reports tomorrow will shed some light on the fight the computer maker has had since January of this year to try and catch up to larger rival Hewlett-Packard Co. (NYSE: HPQ), which reported a touch under $25 billion in revenues for its latest quarter. Has Dell seen increased shipments of PCs with its newer and colorful laptop systems? Is the Wal-Mart retail relationship going well for the company? These questions and many more are on tap for tomorrow's call.

Analyst expectations are for Dell to report an earnings figure of 30 cents per share on revenue of $14.63 billion. The company should be able to make that number despite supply problems that have set back newer and colorful Inspiron notebook shipments (according to industry watchers). It will be interesting to see if any analyst questions come up about this week's acquisition of smaller PC rival Gateway, Inc. (NYSE: GTW) by Taiwan's Acer. Stay tuned tomorrow for liveblogging coverage of the Dell Q2 webcast and call.

Dell (DELL) Q2 earnings preview originally appeared on BloggingStocks on Wed, 29 Aug 2007 19:02:00 EST. Please see our terms for use of feeds.

Shares of Gateway Inc. (NYSE: GTW) soared on Monday when the company agreed to be acquired by Acer for $1.90 per share. The stock closed at $1.85 on Tuesday, a spread of a little less than 3% below the expected closing price.

According to TheStreet.com, there may be more to come. Senior writer Alexei Oreskovic cites an unnamed source who claims that the deal has an out for Gateway if it can find a superior offer, and Chinese Lenovo would appear to be a possible contender.

While the Acer deal presented a huge premium over the stock's most recent closing price prior to the announcement -- more than 50% -- it's actually lower than the stock was trading as recently as May. Even with the deal, there are still a lot of shareholders underwater, and that could spark a shareholder rebellion of sorts. Gateway is in the early stages of a turnaround, and I know many investors had a long-term target much higher than $1.90.

Shares of Gateway, at their current price, may represent a low-risk speculative opportunity. The worst-case scenario (barring something really bizarre) is that you can tender the shares for $1.90 when the deal closes. If another bidder emerges, there could be tremendous upside.

Is Gateway (GTW) a buy here? originally appeared on BloggingStocks on Wed, 29 Aug 2007 10:30:00 EST. Please see our terms for use of feeds.

Before the bell: AAPL, HPQ, GM, MSFT, YHOO ... originally appeared on BloggingStocks on Tue, 28 Aug 2007 08:25:00 EST. Please see our terms for use of feeds.

Quanta's CEO quits: Company to merge with Hon Hai? originally appeared on BloggingStocks on Mon, 27 Aug 2007 16:15:00 EST. Please see our terms for use of feeds.

Acer's strategy in buying Gateway (GTW) for $710 million originally appeared on BloggingStocks on Mon, 27 Aug 2007 10:00:00 EST. Please see our terms for use of feeds.

Before the bell: Futures lower after deals, ahead of data originally appeared on BloggingStocks on Mon, 27 Aug 2007 07:51:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Higher interest rate are making commercial real estate deal makers think twice about deals, according to the Wall Street Journal's "Heard on the Street," sending shares of companies like Archstone-Smith Trust (NYSE: ASN) down from $64 to $60.75 a share.
• The Financial Times reported that U.S. senators have proposed new laws that would impose higher taxes on private equity firms that list their shares on stock exchanges, a move that could be a blow to private-equity firm Blackstone Group, which is seeking to list its shares.
• The U.S. and U.K. are working on a treaty that would allow Britain to buy American weapons without obtaining export licenses, the Financial Times reported; any deal on the issue could face opposition in the U.S. Congress, although the British believe eliminating the need for the licenses would expedite the arms purchasing process.

• Turnaround candidate Eastman Kodak Company (NYSE: EK) may be ready to shine, BusinessWeek's "Inside Wall Street" column reported, and now may be a good time to evaluate a potential EK play, according to investment advisor Gregory MacArthur.
• Gateway Inc (NYSE: GTW) is selling products in China for the first time in a pilot program with Digital China Holdings Ltd, the LA Times reported.
• According to The Nation, The Dow Chemical Company (NYSE: DOW) is planning to ask its board of directors later this year for approval to invest in five petrochemical projects in Thailand.
• Cementos Portland Valderribas, a unit of Fomento de Construcciones y Contractas is planning a bid for Texas Industries Inc (NYSE: TXI), the Expansion reports, citing people close to the situation.

Newspaper wrap-up 6-15-07: Gateway selling products in China originally appeared on BloggingStocks on Fri, 15 Jun 2007 09:15:00 EST. Please see our terms for use of feeds.

Lost this morning in all the news about Hewlett-Packard's (NYSE: HPQ) PC share growth and Dell's (NASDAQ: DELL) fall from grace was the increase in the sales of Apple (NASDAQ: AAPL) Macs reported late yesterday.

Sales of the Mac rose 30% during the first quarter and its market share hit 5% in the U.S., according to Gartner. Hewlett-Packard and Toshiba both grew over 25%, but the Apple number is still impressive. If the Mac continues its current growth, it could pass both Toshiba and Gateway (NYSE: GTW) in the next two years.

Investors forget about the Mac. In the last reported quarter, Mac sales were up 40% to $2.4 billion. That was out of total revenue of $7.1 billion for all of Apple.

iPod sales may falter, and the iPhone may not turn out to be a big hit. But, there is always the Mac, growing at 40% a quarter.

Douglas A. McIntyre is a partner at 24/7 Wall St.

How about them Apples: Mac sales move up originally appeared on BloggingStocks on Thu, 19 Apr 2007 14:15:00 EST. Please see our terms for use of feeds.

In an earlier article this morning, Eric Buscemi wrote Time to build a position in Dell? My Answer is, ABSOLUTELY NOT! I will be short and sweet in my methodical reply to this question.

1. Dell Inc. (NASDAQ:DELL) built its business in a world that does not exist today. When Michael Dell started he had a good idea, a good mind, a good work ethic and low overhead. Most importantly, he had a market place filled with hundreds of other manufacturers and computer assemblers that were inefficient and ineffective in competing with his enterprise. As Dell grew, he drove competitors out of the business, taking market share all the way. Today, few competitors are left, most of them large and well capitalized companies with strong management. Hewlett-Packard Co. (NYSE:HPQ), Toshiba, Lenovo, Sony Corp. (NYSE:SNE), Gateway Inc. (NYSE:GTW) and Apple Inc. (NASDAQ:AAPL) will not be driven out of business very easily, leaving all companies to jockey for percentages of the market. This is a daily battle and while Dell may be equal to the task, growth will occur only with great effort.

Continue reading Forget about Dell -- it's not worth it!

Forget about Dell -- it's not worth it! originally appeared on BloggingStocks on Fri, 02 Mar 2007 14:04:00 EST. Please see our terms for use of feeds.

Before the bell 2-23-07: ALU, MSFT, AAPL, C, CCU ... originally appeared on BloggingStocks on Fri, 23 Feb 2007 08:27:00 EST. Please see our terms for use of feeds.

Before the bell 2-9-07: Upgrades for Big 3 boosts sentiment originally appeared on BloggingStocks on Fri, 09 Feb 2007 07:59:00 EST. Please see our terms for use of feeds.

• Overstock.com to report Q4 earnings, conference call at 11am.
• PDUFA date for Watson Pharmaceutical Inc's (NYSE: WPI) Actoplus XR for non-insulin dependent diabetes mellitus.

• Nike Inc (NYSE: NKE) to hold Analyst Day at 12pm. Credit Suisse First Boston believes Nike will announce the rollout of a specialty retail store concept at the meeting.

• Equinix (NASDAQ: EQIX) to report Q4 earnings; conference call at 5:30pm. Kaufman Brothers notes that the company's last overhang was removed in the middle of January and it sees a $93 price target on the stock.
• PDUFA Date for Roche Holding's (OTC: RHHBY) Cera for chronic renal disease.

• Monthly sales reports reports due from Abercrombie & Fitch Co (NYSE: ANF), Limited Brands (NYSE: LTD), Nordstrom, Inc (NYSE: JWN) and Wal-Mart Stores Inc (NYSE: WMT).
• Gateway to report Q4 earnings; conference call at 5:30pm.

• Corning Incorporated (NYSE: GLW) to hold Investor Meeting at 9am with presentations from its CEO and CFO.

Market highlights For next week: Nike to hold Analyst Day on Tuesday originally appeared on BloggingStocks on Fri, 02 Feb 2007 17:17:00 EST. Please see our terms for use of feeds.