Analysis of Intel and Ebay

The weekly performance of IBM stock presented a contestant growth. One highlight of the falling of stock price in the 6th week in the investment period was when IBM presented the 3rd quarter financial report. The investors weren’t satisfied with the profit report which they expected to be better especially when other IT companies were doing well in the 3rd quarter. One mistake I made was that I didn’t follow closely to the financial report of the company; therefore, I missed the peak of the stock price. From this experience, I learned that financial reports and current news are important indicators of the stock price. By following closely to the current event and analyzing the financial report, investors can maximize the profit and also become more familiar to the market.

Intel operates in an industry, which is comprised of products involving high research and development costs, continuous product improvement and new innovations. The companies in the industry are having high economies of scale and are knowledge based. It helps both the service and manufacturing sectors in the growth process. Intel is positioned as a leading company with its ability to adapt to technological changes and its strong relations with other businesses who are major buyers of integrated circuits. The industry in which it operates is very competitive and comes with high risks as

1. What are the lessons useful for their future microprocessor business that you think Intel should have taken away from their experience in the DRAM industry?

The share price of $270,000 was significantly higher because the “fair value” as perceived by the dissenters, which accounted for the chance of an IPO. Taking into account the recently traded Kohler Co. share prices, the book value of a share, and the possibility of an IPO greatly inflated what the perceived value of each share should be. While Kohler believed their voting control and ownership structure would remain the same, the shareholders believed otherwise. Because shareholders assumed Kohler would go public, they argued for a higher valuation so as to receive the highest price, and thus profit, in the buyout.  So based on the highest MVE, we picked Masco as the comparable firm of choice. Using Masco’s MVE, $9838.8, and LTM EBIAT, $437.3, we solved for Masco’s P/E ratio, which was equal to 22.5. By multiplying the P/E ratio by Kohler’s LTM EBIAT (22.5 * $93.76), we projected a market value of $2,109,610,000.  To solve for estimated share price, we divided the projected market value by 7,587.89, the number of shares outstanding to obtain an estimated share price of $278,023.47. This estimate is near the $270,000 per share offer price.

The research shows that the earnings announcements of firms within an industry can impact the share prices of other firms in the same industry. This effect has been labelled as the ‘information transfer effect’. The ‘information transfer effect’ highlights the belief that share prices react to public information emanating from various sources—including

Intel was always the pioneer in inventing and enhancing the DRAM with respect to the price and performance, but the industry was driven by necessity to cross-license among established players. And Intel was not on power at that time. Exhibit 6 shows the comparative intellectual property consideration.

This case traces the strategic decisions of Intel Corporation which defined its evolution from being a start-up developer of semiconductor memory chips in 1968 to being the industry leader of microprocessors in 1997 when it ranked amongst the top five American companies and had stock market valuation of USD 113 billion.

This report discusses the case study ‘Intel Research: Exploring the Future [1], published in 2005 by the Harvard Business School. The discussion is divided into three different sections: overview, analysis and conclusion.

segment, we have to explain the history of the company and what leads AMD to launch this

4. How effective have competitors been in responding to the challenge posed by Dell 's advantage? How big is Dell 's advantage?

It is important for stockholders to continuously re-evaluate their investments. Although some investors do this more frequently and thoroughly than others, the majority of shareholders do so at least once each year. Therefore, Torres’ desire to update her analysis in order to determine whether Costco was still operating efficiently makes perfect sense. After thorough examination, my analysis proves that Costco remains one of the industry’s leading competitors and there seems to be no reason for Torres to sell her shares as long as she wishes to retain holdings of a retail wholesale club in her portfolio.

Jim Cramer called out to investors to be wary this week since it will be the period when several earnings announcements will be made. The financial guru pointed out that the news will be littered with haphazard headlines that claim to describe a company’s performance for a particular quarter and a single mistake can cause investors millions. CNBC shares Jim Cramer's insight on rolling the dice as an investment

Kimi Ford read all the analysts' reports that she could find about the June 28 meeting, but the reports gave her no clear guidance: a Lehman Brothers report recommended a strong buy, while UBS Warburg and CSFB analysts expressed misgivings about the company and recommended a hold. Ford decided instead to develop her own discounted cash flow forecast to come to a clearer conclusion.

In general, many models use some form of fundamental analysis to understand the relationship between price movement and underlying financials, such as earnings. But over time, the ubiquity of fundamental and sell side earnings estimates data means the alpha previously found in quantitative models now turns to beta. Building an effective alpha producing earnings powered model today requires an alternative data set.

US companies have started reporting their Q1 2017 earnings. During the week of April 24th more than 100 Large Cap companies are expected to report (fig 3.1). At the sector level 36% of Large Cap financial companies are expected to report their earnings during week of April 17th (fig 3.2) and during week of April 24th more than 50% of companies in the Materials, Industrials, Transports, and Real Estate sectors are expected to report. Prior to Q4, sales surprises increased over the previous 5 quarters as analyst expectations were lower than the company’s reported results. Last quarter, sales surprises dipped for the first time in nearly 2 years as fundamental expectations caught up with the companies reported results. We expect surprise rates for both earnings and sales to be similar to the prior quarter surprises which was a rate of 75% of earnings and 51% of the revenues reported (See Fig 1.1).