Taiwan's Acer Inc. hasn't become the world's second-largest personal computer manufacturer for nothing. In its most recent quarter, the company announced that it attained its highest profit in almost three years, mostly at the expense of the company it recently displaced from the number two spot, Dell (DELL). It is still behind global computer leader Hewlett-Packard (HPQ).

At the same time it has grown shipments, it has kept an eye on profits, which is impressive. In general, rapid market share gains means margin cuts, but not here. Acer, which just four years ago seemed in disarray as it tried to find out why it was being beaten in the PC game, has apparently figured it out.

Continue reading Acer Announces Highest Net Income in Three Years

Acer Announces Highest Net Income in Three Years originally appeared on BloggingStocks on Tue, 09 Feb 2010 12:40:00 EST. Please see our terms for use of feeds.

PC makers like Hewlett-Packard Corp. (NYSE: HPQ), Dell Inc. (NASDAQ: DELL) and Taiwan's Acer have seen computer sales decline in the past year as consumers faced a recession and tightened wallets.

Now, this isn't the first time PC sales have slumped, but it did send a red flag up a bit to those the sell the most: how about diversifying a little bit?

Continue reading PC makers look to the smartphone market to offset slumping PC sales

PC makers look to the smartphone market to offset slumping PC sales originally appeared on BloggingStocks on Tue, 25 Aug 2009 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Acer set to challenge Hewlett-Packard for top notebook PC sales spot

Acer set to challenge Hewlett-Packard for top notebook PC sales spot originally appeared on BloggingStocks on Wed, 08 Apr 2009 16:30:00 EST. Please see our terms for use of feeds.

Acer chief: No layoffs from Gateway acquisition originally appeared on BloggingStocks on Tue, 30 Oct 2007 13:39:00 EST. Please see our terms for use of feeds.

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.

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.

Gateway will also exercise it right of first refusal to buy Europe PC company Packard Bell. Chinese PC company Lenovo has been trying to acquire the firm to improve its reach in Europe.

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

Flash: Acer buys Gateway originally appeared on BloggingStocks on Mon, 27 Aug 2007 05:53:00 EST. Please see our terms for use of feeds.

Continue reading Gateway recalls 14,000 laptop batteries

Gateway recalls 14,000 laptop batteries originally appeared on BloggingStocks on Wed, 20 Jun 2007 19:39:00 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.

A fellow I know is preparing himself for a college education in veterinary science. Knowing that I slink around the internet tech world, he came to me looking for advice about what notebook computer he should buy. He plans to spend between $400 and $600 and he wants to get the most for his money (smart kid). He needs his machine for internet access, music downloads, heavy-duty emailing and of course for some school work.

It occurred to me that because my computer experience is limited to desktop models I might not be Andy's best source of information on the latest notebooks. So I told him that I'd present the question to our readers and deliver your input back to him. Knowing that our readers are some of the brightest minds on the internet, I have no doubt that Andy will get his best information right here on BloggingStocks.

So, the question is:

What is the best laptop computer that Andy can get for between $400 and $600 and what should he expect as far as speed, memory, peripherals and overall performance?

Apple, HP, Gateway or Dell - looking for the best notebook originally appeared on BloggingStocks on Fri, 06 Apr 2007 08:06:00 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.

After months of speculation and one bad headline after another (SEC probes, exploding laptop batteries, wilting market share), Dell Inc. (NASDAQ:DELL) did what most people expected and replaced Kevin Rollins as CEO with company founder Michael Dell. The move continued a long tradition of "encore CEOs" who get called back when companies they founded or led to greatness fall on hard times.

Experts say it is rare for a company to go back to its executive roots. The movie signals both a sense of desperation and a need for a proven hand at the helm.

The question now is whether Michael Dell will be the next Steve Jobs or the next Ted Waitt. Jobs famously saved Apple Inc.(NASDAQ:AAPL), which lost its way in the 1990s and saw its already-small market share in PCs shrink dangerously. Jobs revitalized the company, pushing for a new operating system (OS X), new designs (the iMac) and new products (the iPod).

But on the other hand, there was Ted Waitt, who started Gateway(NYSE:GTW) and became an icon (as much for his ponytail and cow-spotted box as for his computers). At the peak of Gateway's strength Waitt handed over the reins, but when the dot-com bubble burst Gateway started to suffer and Waitt stepped back into the corner office. All of his skills and long hair were not enough, though, to turn the company around. He left Gateway again (this time entirely) in 2005.

Other CEOs have done it, with mixed results, among them Charles Schwab at his eponymous firm (NASDAQ:SCHW)(which has gone well) and Ken Lay at Enron (which did not go as swimmingly).

It raises the question, though, of the long-term future for Dell (the company), and it may prove instructive for any business looking to make a leadership change.

At some point, you have to move on.

Michael Dell can not run Dell forever. Bill Gates could not run Microsoft (NASDAQ:MSFT)forever, and knew it, ergo Steve Ballmer. Mom-and-pop businesses that thrive do so because son-and-daughter are ready to step in when the need be.

Some suggest that poor prep work by a corporate board (or Mom and Dad) is to blame for bad transitions. A business has to be preparing itself for new leadership all the time. The recipe seems to be something like this: come to terms with the need for new leadership, swallow your pride, find someone qualified, and then get out of the way and let them run your business for you.

Even if it does feel like cutting off a finger.

Is Michael Dell the next Steve Jobs or the next Ted Waitt? originally appeared on BloggingStocks on Thu, 01 Feb 2007 12:23:00 EST. Please see our terms for use of feeds.

Can Dell build better laptops too? originally appeared on BloggingStocks on Mon, 13 Nov 2006 13:11:00 EST. Please see our terms for use of feeds.

Jim Cramer recently discussed Gateway, Inc. (NYSE:GTW). He said it only sounds cheap because it is currently trading under $2 per. Cramer also noted that GTW reported late last week.

He argued that Hewlett Packard Company (NYSE:HPQ) is far cheaper than GTW. Cramer said GTW will trade at 27 times earnings next year, assuming it can even hit estimates.

HPQ trades at far better P/E ratios on a forward basis.

GTW is down steadily year after year. He also had his 10 foot pole out again. He said the new CEO won't be able to do much for a while. He thinks that the Q4 will be slow at GTW because it is purely reliant on computers.

We have slammed Gateway ourselves on almost every occasion and opportunity. Cramer thinks you can own HPQ much easier.

Cramer calls Gateway an Avoid originally appeared on BloggingStocks on Mon, 06 Nov 2006 16:23:00 EST. Please see our terms for use of feeds.

The people at Goldman Sachs who yesterday upgraded Dell to Neutral must not read the papers. The scribes at The Wall Street Journal say that computer prices are going through the floor [subscription required] this holiday season.

Not everyone can be right on this one. With the new operating system from Microsoft Corp. (NASDAQ:MSFT), Windows Vista, some people will delay buying new PCs until early next year. No one knows how many. But, with most of the current generation of PCs running Pentium IVs, there are probably very few performance reasons for moving to a new machine. Why not wait for the hot software?

Analysts are saying that to get people into stores or online, companies like Dell, Inc. (NASDAQ:DELL), Hewlett-Packard Co. (NYSE:HPQ), and Gateway, Inc. (NYSE:GTW) are going to have to do the limbo on pricing. If so, Goldman's theory on Dell may be wrong. The stock was up 3.5% yesterday on the upgrade to almost $25, which means it is back in the middle of its 52-week range of $33.22/$18.95. It doesn't belong there. At least not until Vista is out.

Apple Computer, Inc. (NASDAQ:AAPL) may be another victim of the PC market over the next few months. It is hoping that its computer sales can grow as iPod sales reach a saturation level. Apple has cut a deal with Best Buy and believes that the success of the iPod and the new Intel-based Macs will bring the new business in. The problem is that it is hard to sell premium PCs when the competition is selling very good machines for under $1,000.

Not a bright picture for anyone except the consumer.

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

Holiday sales may sink Dell and set-back Apple originally appeared on BloggingStocks on Fri, 03 Nov 2006 09:44:00 EST. Please see our terms for use of feeds.