Post by christopher on Oct 29, 2015 12:50:40 GMT -5
I will add this here as it pertains to the upcoming conference call
So much for a run-up before the earnings.
@ 2:00 PM ET we are down .25 sitting @ $6.60 share. trading volume is a measly 320,000 shares traded.
Let's hope for a run up into (Friday and Monday) and after the upcoming call.
I definitely do not believe that AMCC share price is on the "high end" why I believe that if the upcoming call has positive earnings with positive news going forward then we should be able to reach and maintain the mid-$7.00 level. (I hope)
Last Edit: Oct 29, 2015 12:52:31 GMT -5 by christopher
I really think, and this is just one man's opinion, that the reaction in AMCC's price was in response to CAVM's loss after their earnings call, and that that was a response to what CAVM said about what could be a disappointing Q4 for CAVM. Does any of this apply to AMCC? Maybe not. For one thing, CAVM has a ridiculous valuation. If they don't continue to show stellar results, their share price could implode. AMCC has a P/S around 3.5. CAVM is about 2.5X that. Yesterday's loss was on very low volume. This was the day-trading folks with ADHD running for the exits. The longs are still holding. Let's see what Monday brings.
Post by christopher on Oct 30, 2015 10:37:09 GMT -5
After today's share price sunk rather than soar, I thought that maybe I should wait until the close to respond. There is a possibility that the share price could run up a bit into the close but as time goes on I am beginning to doubt it.
Volume has been on the low end with the selling, which is good.
phobos, I agree with your post above. Who knows, we may have to settle on $6.50 after the call until news of a buy out occurs again.
The only thing that matters at this point is an exceptional earnings call, with positive guidance.
After today's share price sunk rather than soar, I thought that maybe I should wait until the close to respond. There is a possibility that the share price could run up a bit into the close but as time goes on I am beginning to doubt it.
Volume has been on the low end with the selling, which is good.
phobos, I agree with your post above. Who knows, we may have to settle on $6.50 after the call until news of a buy out occurs again.
The only thing that matters at this point is an exceptional earnings call, with positive guidance.
"X-Gene3 will be the chip which competes with Qualcomm's recently announced 24 core chip. "They expect production in 2016 but we expect it will be more like 2017," said Williams."
APM's FPGA comes from Xilinx:
"Asked What APM is doing to exploit FPGA acceleration, Williams replies: "The vehicle for FPGA acceleration is the PCIe interface. We work Xilinx. The idea of FPGA acceleration has been over-hyped.""
I believe QCOM is also working with Xilinx.
Where are the markets?
""The most interest in ARM for servers is coming from China," says Williams. At the moment the US represents 40% of server volumes followed by China at around 25% and Europe with 15%."
Demonstrably better performance:
"PayPal found, says Williams, that using ARM instead of Intel delivered 900% higher node density, 85% lower power consumption at a 45% lower acquisition cost. Total cost of ownership of an ARM-based system is 35% lower than an x86-based system, he said."
which would not be an issue except for their sky-high valuation.
The acquisitions continue apace, now with FSL to be acquired by NXP, BRCM to be acquired by AVGO, and PMCS to be acquired by MSCC (who also acquired VTSS). That leaves TXN and MRVL (currently having financial issues), who might show interest in making an acquisition. I also find the prospect of Xilinx making an acquisition to get into the CPU storage space intrigueing.
I don't see INTC making an offer. In order to do so, it would mean that they would have to consider leaving their primary business, which they still see as being PCs (lucky for us), and rebranding ARM's technology.
