Continue reading Oracle Completes Sun Merger

Oracle Completes Sun Merger originally appeared on BloggingStocks on Mon, 01 Feb 2010 17:20:00 EST. Please see our terms for use of feeds.

Career Education (CECO) closed at $22.30, selling off 19% in late afternoon trading on Dec. 18 after the Office of Inspector General sent out a negative letter concerning the for-profit education group. CECO January option implied volatility is at 58, above a level of 45 from December 16. April volatility is at 55; above its 26-week average of 43 according to Track Data, suggesting traders purchasing options to hedge price movement.

Three stocks with IV rise on Dec. 18: Sun Microsystems (JAVA) +3%, PowerShares DB US Dollar Index Bullish Fund (UUP) +2%, Walgreen's (NYSE-WAG) +2%, according to IVolatility.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: Career Education Volatility Elevated at 58 on OIG Report originally appeared on BloggingStocks on Mon, 21 Dec 2009 08:00:00 EST. Please see our terms for use of feeds.

Continue reading Oracle blinks on Sun deal

Oracle blinks on Sun deal originally appeared on BloggingStocks on Mon, 14 Dec 2009 18:00:00 EST. Please see our terms for use of feeds.

Sun Microsystems( JAVA) closed at $8.15. European antitrust authorities formally objected to Oracle's (ORCL) proposed purchase of JAVA, reports the Wall Street Journal. The move is expected to delay the deal from closing. ORCL announced in April it was paying $9.50 in cash per share for JAVA. JAVA December option implied volatility is at 47, January is at 48, April is at 34, above its 21-week average of 21, according to Track Data, suggesting larger price movement.

American International Group (AIG) closed at $35.50. Moody's sees AIG repaying government loans. AIG December call option implied volatility is at 77, puts are at 85; below its 26-week average of 108, according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: Sun Microsystems volatility elevated on E.U. antitrust objections originally appeared on BloggingStocks on Wed, 11 Nov 2009 08:00:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Sudden euphoria, take 18 (C, DNDN, LOW, ORCL, SII)

Closing Bell: Sudden euphoria, take 18 (C, DNDN, LOW, ORCL, SII) originally appeared on BloggingStocks on Tue, 22 Sep 2009 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Oracle's Ellison: We may make netbooks soon

Oracle's Ellison: We may make netbooks soon originally appeared on BloggingStocks on Thu, 04 Jun 2009 08:20:00 EST. Please see our terms for use of feeds.

Sun Microsystems (NASDAQ: JAVA) will be acquired by Oracle (NASDAQ: ORCL) for $9.50. JAVA May call option implied volatility of 118 was above its 26-week average of 89, according to Track Data, suggesting larger price movement.

ORCL is recently down 80 cents to $18.20 in pre-open trading. ORCL April option implied volatility of 49 is near its 26-week average of 52, according to Track Data, suggesting non-directional movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Options Update: Sun Microsystems May volatility up into Oracle purchase originally appeared on BloggingStocks on Mon, 20 Apr 2009 08:08:00 EST. Please see our terms for use of feeds.

It seemed like a done deal. But in the high-stakes M&A game, things can easily fall to pieces.

Just look at IBM (NYSE: IBM). Over the weekend, the firm withdrew its $7 billion bid for Sun Microsystems (NASDAQ: JAVA). It's yet another heart-breaker for beleaguered Sun shareholders.

Actually, according to the Wall Street Journal [a paid publication], it looks like IBM was the only company interested in a deal. So, even though Sun had little negotiating leverage, it acted as though it had a lot - that is, by holding out for a higher valuation and firmer deal protections (such as "change of control" clauses that provided Sun execs with lush payouts). Well, I guess IBM didn't need Sun that badly or if anything, was certainly willing to play hardball.

Continue reading IBM takes the nuclear option on the Sun deal

IBM takes the nuclear option on the Sun deal originally appeared on BloggingStocks on Mon, 06 Apr 2009 11:10:00 EST. Please see our terms for use of feeds.

Continue reading Microsoft's Ballmer slams IBM's potential purchase of Sun Microsystems

Microsoft's Ballmer slams IBM's potential purchase of Sun Microsystems originally appeared on BloggingStocks on Fri, 20 Mar 2009 14:20:00 EST. Please see our terms for use of feeds.

Hewlett-Packard, Inc. (NYSE: HPQ) has been on a roll lately. The company has basically battered Dell, Inc. (NASDAQ: DELL) in the last two years as it increased its PC marketshare in the consumer and retail arena.

Now it has set its sights on IBM Corp. (NYSE: IBM), as it tries to become the largest computer service and consulting company in the world. It's already the largest by sales, topping $100 billion annually.

Continue reading Hewlett-Packard to face more pressure if IBM buys Sun Microsystems

Hewlett-Packard to face more pressure if IBM buys Sun Microsystems originally appeared on BloggingStocks on Thu, 19 Mar 2009 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Fed becomes buyer of, well, everything (JAVA, IBM, GE, AIG, ADBE, FAS)

Closing Bell: Fed becomes buyer of, well, everything (JAVA, IBM, GE, AIG, ADBE, FAS) originally appeared on BloggingStocks on Wed, 18 Mar 2009 16:00:00 EST. Please see our terms for use of feeds.

On Thursday, government statistics announced that 516,000 Americans filed for unemployment in the first week of November. Today, 16,000 more workers from two companies joined what is likely to be a daily list that strikes fear into the hearts of people across the country. And why not? After eight years of declining inflation-adjusted wages, their reward for hanging on is a heightened risk of losing those jobs altogether and competing with more people for fewer jobs in a receding economy.

The two companies announcing big layoffs: a big bank and a leading tech company that sells to banks. According to reports, Citigroup (NYSE: C) may lay off 10,000 employees -- adding to the 23,000 it has already cut in the last year. Sun Microsystems (NYSE: JAVA) announced it will can 6,000 people -- 18% of its work force --- citing the need to "align its cost model with the global economic climate."

Is this the bottom? I seriously doubt it. The unemployment rate could get up to 8.5%, and maybe as high as its post-Depression high of 10.7%, up from its current 6.5%. At least that's what Nobel Prize winning economist and New York Times op-editorialist Paul Krugman expects. Needless to say, in an economy which depends on consumers for 70% of its growth, this is not good news since it divides the country into two categories -- those who lose their jobs and those who fear losing them.

And both groups are likely to spend less.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College. His eighth book, You Can't Order Change: Lessons From Jim McNerney's Turnaround at Boeing, will be published by Portfolio on December 26, 2008. He owns Citi shares and has no financial interest in Sun securities.

A black Friday for 16,000 workers as Citi and Sun plan massive layoffs originally appeared on BloggingStocks on Fri, 14 Nov 2008 09:45:00 EST. Please see our terms for use of feeds.

Earlier this week, my colleague Douglas McIntyre observed that Sun Microsystems (NASDAQ: JAVA) "is one of the worst performing large-tech companies in America." It seems that ratings firm Fitch agrees with his take as last night it slashed JAVA's ratings outlook from "stable" to "negative." As a result of the move, JAVA is trading just pennies away from its annual low of $4.51 this morning.

In a release, Fitch cited a litany of challenges facing Sun Micro, including deteriorating demand outlook, recent share losses in the server market, significant decline in gross margin, and the expectation for continued pressure on information technology spending into 2009.

Even more troubling, investors learned today that Sun's co-founder, Andreas von Bechtolsheim, is stepping down from his role as chief architect to work for start-up firm Arista Networks.

However, as bleak as things may seem for Sun, another report adds an interesting angle to McIntyre's suggestion that JAVA should be sold to the highest bidder. Southeastern Asset Management, a value investment firm, said Wednesday that it's boosted its stake in Sun Microsystems to 21%. The firm said that it plans to hold discussions with Sun's management "regarding opportunities to maximize the value of the company for all shareholders." And we all know what that's code for, right? Stay tuned to see how this potential M&A deal unfolds.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research.

Can a white-knight bid rescue Sun Microsystems? originally appeared on BloggingStocks on Thu, 23 Oct 2008 12:30:00 EST. Please see our terms for use of feeds.

Minyanville contributor Adam Katz dares to share the kind of keen insight and actionable information you won't find in any prospectus. For more original thought, visit www.minyanville.com.

Texas Instruments (NYSE: TXN) reported disappointing results and Sun Microsystems (NASDAQ: JAVA) preannounced negatively. Last week, IBM (NYSE: IBM) followed through with their positive preannouncement and Google (NASDAQ: GOOG) outperformed expectations.

What we are seeing is a divergence in where dollars are flowing. With company web sites largely representing the most effective and quantifiable marketing tool, it should come as no surprise that GOOG has revenue streams that are reasonably insulated. (This is not a call on GOOG because I believe the market is also pricing in the fact that the hyper growth days are behind them).

With respect to IBM, infrastructure software has been the primary driver behind the top line growth and growth in margins. In the meantime, the disappointment that we are seeing from TXN and JAVA should be reasonably expected as you are seeing slowing demand for hardware (in part driven by virtualization which by definition lowers hardware requirements) and TXN which, leveraged to consumer communication devices, is also taking a pause.

Continue reading Not all tech created equal (GOOG, IBM, TXN, JAVA)

Not all tech created equal (GOOG, IBM, TXN, JAVA) originally appeared on BloggingStocks on Tue, 21 Oct 2008 13:40:00 EST. Please see our terms for use of feeds.

Sun Microsystems (NASDAQ: JAVA) showed, once again, that it is one of the worst performing large-tech companies in America. The firm said its loss will be between 25 cents and 35 cents per share for the three months ended Sept. 28. Excluding one-time charges, the drop is between 2 cents and 12 cents per share. To make matters worse, it will probably take goodwill impairment charges for companies it has bought over the last two years. In other words, Sun paid too much.

Sun's revenue is also expected to be light, at about $3 billion.

It is old news to say that Sun has not come up with a single product compelling enough to get it out of the mud. Its servers are no better than those marketed by IBM (NYSE: IBM) or other large hardware companies. Corporate customers tend to go with the supplier that has the largest service force and best balance sheet.

The announcement does raise the question of why Sun is not being sold by its board. The stock trades at just above $5, down from a 52-week high of $24.08. So far this year, it is off nearly 70% while IBM is down only 12%.

Sun has a clean balance sheet with plenty of cash and modest debt. It would fit well with a number of larger companies that would like a larger part of the global server market.

Let the auction begin.

Douglas A. McIntyre is an editor at 247walls.com.

Sun Microsystems demonstrates why it should be sold originally appeared on BloggingStocks on Tue, 21 Oct 2008 08:35:00 EST. Please see our terms for use of feeds.

Sun Microsystems (JAVA) drops on forecast of losses originally appeared on BloggingStocks on Fri, 01 Aug 2008 13:39:00 EST. Please see our terms for use of feeds.

Sun Microsystems' (NASDAQ: JAVA) preliminary numbers for the fourth quarter sparked an after-sessions rally on Tuesday. The tech entity said it should see somewhere between $3.7 billion and $3.8 billion for the top line. Earnings per diluted share will come in between $0.25 and $0.35 on a non-GAAP basis. Gross margin should be at least 44%.

Wall Street was apparently happy that Sun didn't expect an earnings bomb, according to this Reuters article. Understandable, considering the current state of the economy. It looks like Sun has an okay chance of meeting or beating earnings expectations. Reuters says that analysts are looking for 10 cents per share on a GAAP basis. Management is looking to do somewhere between 5 cents and 15 cents per share. It's too bad the range wasn't more narrow, but I guess the theme here is that if business is at least this good, then the shares are a buy.

As for me, I'm not sure I see the merit of the euphoria. Sure, things could have been worse, but that doesn't mean I want to buy Sun here. The stock has done horribly this year, losing 50% of its value year-to-date (at least before the rally). I think investors should be very careful about chasing values during these bearish times. It's hard to say how bad the recession will be, and how it will affect the tech names. Companies such as Hewlett-Packard (NYSE: HPQ) and Microsoft (NASDAQ: MSFT) have seen their stocks pressured by sellers. If the shares of those blue chips are having problems, I can't see why I'd want to chase Sun Microsystems.

Disclosure: I don't own any company mentioned; positions can change at any time.

Sun Microsystems' preliminary results pleased investors, but I'm not buying originally appeared on BloggingStocks on Wed, 16 Jul 2008 09:20:00 EST. Please see our terms for use of feeds.

• If the next generation Apple (AAPL) iPhone is effectively a handheld computer, is the personal computer space a place to poke on the short side?

• What's the franchise value for Sun Microsystems (SUNW, er, JAVA)?
  
  
• Maybe that's the problem. In this ADD, immediate gratification world, perhaps folks don't remember that JAVA used to be SUNW?
  
  
Woah. Nelly?


Given that funky looking Gold Fields (GFI) chart, should I stress that I'm playing name through defined risk calls?


• In addition to the note that when I unwind my short crude I'm goning to sneak out of my long metal play, too?
  
  
• While I grabbed some tertiary financial exposure this morning, why is "Good traders know how to make money while great traders know how to take a loss" repeating in my keppe as I watch the action and overhang in Lehman (LEH)?
  
  
• Speaking of ticker symbols with G's in the front and I's behind, when do I revisit Gannett (GCI), which I pared nicely above $30 and kept some for the thesis?
  
  
Speaking of pairs, how do I get long Jo, short Blair?


R.P.

Positions in LEH, GFI, GCI

Answers I Really Wanna Know: Apple's Handheld Computer originally appeared on BloggingStocks on Tue, 10 Jun 2008 14:39:00 EST. Please see our terms for use of feeds.

HP steals key Sun Microsystems sales exec originally appeared on BloggingStocks on Wed, 04 Jun 2008 15:57:00 EST. Please see our terms for use of feeds.

Trade idea on Sun Microsystems (JAVA) downgrade originally appeared on BloggingStocks on Fri, 23 May 2008 13:12:00 EST. Please see our terms for use of feeds.