Tech Five: Technology Headlines for March 18 2011 ( Wednesday )
1. Long noted for its absence, Intel is now promising to have its silicon inside smartphones in early 2012, five years after the iPhone reinvented the genre and took ARM chips to new levels as the de facto standard CPU. Intel will not license ARM tech either, but pursue designs based on its own low power architecture. Meanwhile, an Intel exec says Microsoft will make several versions of Windows 8, including four that support ARM chips--a bitter blow to traditional ally Intel.
2. App developers may be the new target for so-called patent trolls--firms whose business is in earning revenues via patent licensing and lawsuits. Recently a growing list of developers have been pressured by Lodsys, and Apple's legal department is investigating. Meanwhile a company called MacroSolve has sued a list of 10 developers for violating a patent relating to collection of questionnaire data and centralizing it. Thousands of developers may be at risk.
3. PopCap games is expanding its operations to include China's social networks. PopCap, recently in the news for an exclusive deal with Amazon's Android efforts, may be showing a new trend in gaming by taking its Plants vs Zombies best-seller and making it a social game on China's huge Renren social net. With over 117 million users in China alone, Renren is a whole new market operating outside the Facebook sphere of influence...and could be a whole new revenue stream.
4. Amazon has paid an undisclosed (but presumably huge) price to buy the A.Co, Z.Co, K.Co, and Cloud.co domain names from their Columbian domain registry owner. While A.Co probably relates to core Amazon business, Z.Co to Zappos and K.Co to Kindle, Cloud.Co has everyone pondering Amazon's plans. The firm is certain to use such expensive assets but as what? It's fueling discussions about bigger tablet and cloud-based plans.
5. The RIAA is pushing a new law in California that would allow warrantless access and search powers to authorities into CD and DVD manufacturing plants. It's an effort to tackle music and movie piracy on physical discs, which RIAA contends is killing profits and innovation, but the bill is causing concern as it proceeds into being because it violates constitutional principles of probable cause.
( Source: Fast Company )
( Source: Fast Company )
LinkedIn ( NYSE: LNKD ) set a price for IPO offerings at $ 45 per share, 30 % above than initial target of $ 32 to $ 35 a share. Shares of the company will start trading at NYSE under the ticker of LNKD from today ( Thursday May 19 2011 ). It will be first US based social networking site to be listed on US stock markets in NYSE.
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| LinkedIn logo( NYSE: LNKD ) |
Earlier, company was planning to offer a share at $ 32 to $ 35 which was calculated as 12 times of its 2010 sales. Another Chinese Social networking site Renren Inc ( NYSE: RENN ) was listed couple of week ago on NYSE and company has offered a price of $ 12 to $ 14 per share that is 78 times its 2010 sales. Renren Inc was listed on NYSE and traded well above $ 20 on first day, but after announcements of LinkedIn price offerings, Renren Inc's stock has retreated more than 50 % and slipped below its issue price. Read More.
The pricing completed late Wednesday marks the final step before LinkedIn's shares are available in the public market for the first time in the company's eight-year history.
Analysts are expecting that stock will jump today after listing, although LinkedIn is offering shares 30 % above that earlier target price of $32 to $ 34.
The IPO puts a $4.3 billion market value on LinkedIn, the highest for a U.S. Internet company taking its first bow on Wall Street since Google went public nearly seven years ago.
(Source: Associated Press )
Credit Suisse
India: Current Account Deficit Obfuscates Oil Outstandings To Iran, Export Growth Unsustainable
As per the RBI, India's current account deficit fell to an estimated 2.5% of GDP in the March 2011 quarter, from 3.1% in 9MFY11. Driving this is a cut in trade deficit due to (1) a fall in implied oil import volume (Fig 1) and (2) a rise in exports.
● We note that implied Indian oil import volumes have fallen sharply. This 26% YoY fall seems to be an accounting flaw, partly due to non-payments to Iran. If we take last year's volumes on this year's oil price, CAD would increase by US$14 bn (0.8% of GDP).
● Exports started picking up from Nov 2010. We now have a split. The increase – at least in Nov-10 – was limited to a few sectors : metals (50%), transport equipment (likely auto parts, 20%) and cotton + yarn (15%) are together 85% of the incremental growth, but only 25% of total exports.
● Agri exports (mainly cotton), while small, helped the recent surge. Cotton prices in Nov-10 were up only 50% YoY to c.US$120/lb.
In subsequent months, they rose to US$200/lb, and may have played a larger role in export growth till March 2011. They are now down to ~$150. Exports may continue to be strong, but the Nov-10 split does not provide confidence in sustainability. In the absence of trade support, despite a record US$76 bn in fund inflows in FY11 (equity+debt), the Rupee has been weak (except against the USD). This creates a worrying circularity for investors.
Assessing sustenance of the fall in trade deficit
India's current account deficit fell to an estimated 2.5% of GDP in Mar-11 quarter, from 3.1% in 9MFY11. This has been led primarily by reduction in the trade deficit. This, in turn, has been caused by (1) a fall in implied oil import volume and a rise in exports. Oil import value was flat YoY in the March 2011 quarter despite a sharp increase in oil prices, implying that volumes fell 25%.
Simultaneously, FY11 exports were significantly higher than prior peaks, and at US$246 bn – much higher than the trade ministry's target of US$200 bn. YoY exports growth is back to pre-crisis levels.
The pick-up occurred from 3Q11 onwards, in particular from Nov 2010. We attempt to assess sustainability with the Nov 2010 split. Two-thirds of India's exports are manufactured products, which remain flat since March 2010. There has been a spike in agri exports – both cotton and yarn exports have benefited from relaxed export limits and a sharp increase in prices globally.
We note that 97% of the incremental YoY growth in exports in November 2010 came from sectors accounting for only one-third of exports. Of these, commodity exports are 65% of incremental exports.
Kotak Realty Funds Group, the private equity (PE) arm of Kotak Bank, is aiming to raise Rs 600 crore through its fourth realty fund to be launched in the next few days. The fund will mobilise money from the domestic market and invest mainly in residential properties across India. It will have a green shoe option of Rs 100 crore.
"We will launch our fourth fund soon. Some of our first fund investors, who received the entire principal in addition to over 20% return, have already shown interest in participating in this new fund. We should be able to conclude fund raising within the next few weeks, that is early June," said S Sriniwasan, chief executive officer of Kotak Realty Fund.
Kotak Realty has a total $750 million worth of assets under advisory through three funds, including $331-million Kotak Alternate Opportunities India Fund and an offshore fund of $265 million.
Its first fund, Kotak India Real Estate Fund I, launched in February 2006, has deployed its entire corpus of Rs 457 crore with notable investments such as Lemon Tree Hotels, Pride Hotels, 3C Green Boulevard and Clover Golf community. Earlier this year, it returned the entire principle of this first fund in addition to over 20% returns to investors.
Kotak is raising the new fund after almost three years of launching its last fund — an offshore fund worth $265 million. A majority of this offshore fund has also been deployed, and Kotak is in talks with some developers to invest the balance money in residential properties, primarily in Delhi and the National Capital Region. It has also managed to return 20% principle of another domestic fund, worth $331 million, which was launched in August 2007.
The fund has already exited from its earlier investments, including Sobha Developers, Mayfair Housing, Phoenix Mills and NDR Warehousing in Mumbai. In January, the fund sold its 20-acre land parcel at Old Mahabalipuram Road in Chennai to Homex for Rs 130 crore. Recently, the fund sold its 720,000 sq ft commercial building in Goregaon suburb of Mumbai to Tata Realty for Rs 525 crore. In August 2006, Kotak Realty through its Kotak India Real Estate Fund I had bought this then under-construction property from K Raheja Constructions for Rs 230 crore
High fuel and commodity prices will keep India's troublesome inflation levels elevated, while the Reserve Bank of India (RBI) will raise interest rates more aggressively than economists expected just three months ago, a Reuters poll showed.
In the poll taken last week, the wholesale price index (WPI) , India's main inflation gauge, showed prices are expected to rise by an average 7.7 percent for the fiscal year ending March 2012, a sharp increase over the 6.4 percent seen in January's poll, before easing to 6.0 percent in the next fiscal.
Much of the poll was conducted before Tuesday when the RBI raised interest rates by a bigger-than-expected 50 basis points and said it was ready to trade off some growth in the short run in order to rein in prices.
The surprise move also prompted economists to pencil in more rate hikes than indicated by them in last week's poll.
The RBI appears "ready to tolerate slower near-term growth, but not higher inflation, as the latter will derail long-run growth prospects," said Sonal Varma, India economist at Nomura.
However, focusing only on aggressive monetary tightening, at a time when growth indicators are already faltering, could choke growth with only a limited effect on inflation, she added.
India's inflation soared to nearly 9 percent in March, well above the RBI's projection of 8 percent for the final month of the last fiscal, due to surging food and global fuel prices.
The RBI, on Tuesday, also revised its inflation projection for the year and now expects it to remain elevated near March levels in the first six months starting April, before easing in the second half.
The poll showed WPI is now expected to top 8.0 percent in every quarter of 2011 with the biggest upgrade to the quarters ending September and December where forecasts have been pushed up to 8.6 and 8.5 percent respectively versus the 6.9 and 7.0 percent in the January poll.
In stark contrast to India and China are richer nations like the U.S., UK and euro zone where monetary policy is still highly accommodative and inflation concerns are only now beginning to filter into policy making.
After nine increases in the repo rate since March last year, the RBI is expected to follow up with more hikes in a bid to tame India's rampant rate of inflation.
Ten of the sixteen economists, who gave forecasts for the repo rate, said the RBI would raise rates again in June by at least 25 basis points. Economists now expect the repo rate to reach 8 percent by December, 100 basis points above what was predicted in the January poll.
"This rate hike is significantly higher than expectations and reflects strong concerns of inflation on part of the central bank. They are out of the baby steps into the aggressive mode," Sujan Hajra, chief economist, Anand Rathi Financial Services, said after Tuesday's policy.
SLOWDOWN IN GROWTH
India's gross domestic product is expected to rise 8.3 percent in the year ending March 2012, lower than the 8.5 percent expected in the January poll.
Industrial output in February slowed to 3.6 percent dragged down by a contraction in capital goods output, which shrank 18.4 percent compared with a nearly 47 percent expansion in the same period last year.
"The RBI's rate actions could mean a few years of growth at or below trend as a necessary evil to contain inflation and inflation expectations," said Nomura's Verma.
Even so, growth was expected to stay above 8 percent in every quarter of 2011, and clocking 8.5 percent in the fiscal ending March 2013.
Ultimate Analysis on NIFTY Future (18th May, 2011)
The markets closed in the red for the third consecutive day of the week as heavyweights RIL, SBI and ONGC witnessed selling pressure through the day. The S&P CNX Nifty closed the day down -18.35 points or -18.35 % at 5420.60.
The Nifty futures closed and settled finally at 5424.05, down by -23.35 or -0.43 %.
Positional Trend with Levels
Just watch closing…5459 below…!
Suppose to happen this one….then Targets of Position will be 5366-5321 for traders of short term.
Note: This pull is not believable for ending of Bearish Trend but also not confirmation of Bullish fully
Small Risk Opportunity in ADVANCED (Base of Hourly oscillators) : Selling levels 5611-5629 and Short Term Targets will 5536-5476, if trades 5630 above for 10minitues…then Exit from Short Position
(Please, Note that we are long with nifty future as mentioned above paragraph, yet we try to book profit 5584 above)
Keep Patience of Accurate single and our levels
(New update will be below 5440 only)
Technical Data-Sheet on NIFTY:
Last (18-05-2011) Closed@5420 (-19 points)
Last high@5460 low@5401
Weekly high@5605 low@5401
5DMA@5478
20DMA@5635
50DMA@5644
200DMA@5756
5-DAY RSI 25 AND 14-DAY RSI 35.
Refresh your memory…?
On Friday, We sold NIFTY Future 5611-5629…! And Given Targets 5476 to subscribers and yahoo Group me.
Target achieved on Tuesday with Touched 5422
Yes, you can still hold with stoploss 5429 and Read below msg…!
What for Today…?
Support at 5423-5425 zone. Below this zone, Bears will try to dominate up to 5413 level and thereafter slide may continue up to 5386-5388 zone by non-stop.
Hurdles at 5457 & 5482 levels. Bears will not allow Bulls to cross these levels. If Bulls can able to absorb selling then expect short covering up to 5519-5521 zone and thereafter expect a jump up to 5544-5546 zone by non-stop.
Good Oppurtunity to Sell at around 5556-5558 zone. Protect your short positions with a Stop Loss of 5581-5583 zone too.
On Negative Side, break below 5373-5375 zone can create panic up to 5336-5338 zone by non-stop. If breaks & sustains this zone then Bears will try to ride and have caution.
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| Daily Digest Stockinvestips |
1) BG Group ( OTC: BRGYY) upgraded from neutral to buy by UBS.
2) Lindsay Corp ( NYSE:LNN) upgraded from underperform to neutral by Wedbush.
3) Vocus ( NASDAQ: VOCS) upgraded from neutral to outperform by Robert W. Baird.
See More here
Downgrades for May 18 2011 Wednesday:
1) Kilroy Realty ( NYSE: KRC ) downgraded from top pick to outperform RBC Capital Mkts.
2) Regency Centers ( NYSE: REG) downgraded from buy to hold by Argus.
See More here
Coverage Initiated for May 18 2011 Wednesday:
1) Allscripts-Misys Healthcare ( NASDAQ: MDRX ) coverage initiated with outperform by Robert W. Baird.
2) CVR Energy ( NYSE: CVI) coverage initiated with buy by Dahlman Rose.
3) CVR Partners ( NYSE: UAN ) coverage initiated with hold by Dahlman Rose.
4) Delek US Holdings ( NYSE: DK ) coverage initiated with buy by Dahlman Rose.
5) Dexcom ( NASDAQ: DXCM) coverage initiated with perform by Oppenheimer.
6) First Potomac Realty ( NYSE: FPO ) coverage initiated with buy by Compass Point.
7) Golar LNG Partners ( NASDAQ: GMLP) coverage initiated with outperform by RBC Capital Mkts.
8) Hasbro ( NASDAQ: HAS ) coverage initiated with neutral by Longbow.
9) HeartWare ( NASDAQ: HTWR ) coverage initiated with perform by Oppenheimer.
10) Insulet ( NYSE: PODD) coverage initiated with outperform by Oppenheimer.
11) Mattel ( NASDAQ: MAT) coverage initiated with buy by Longbow.
13) SandRidge Mississippian Trust I ( NYSE: SDT) coverage initiated with neutral by Robert W. Baird.
14) Thoratec ( NASDAQ: THOR ) coverage initiated with outperform by Oppenheimer.
Stock of the company Satcon Technology Corporation ( NASDAQ: SATC ) jumped more than 18 % in the morning trade with out any specific news or announcements from the company.
Volumes are abnormally high and up move looks stronger. Trader might take positions for intraday gains, but might not carry the investment positions as there is lack of news behind the stock move. The last news from the company was on May 13 when company has appointed new chief financial officer and stock corrected 2 trading sessions after that announcement. This might be a bounce from low level as traders might closing their short positions on the stock.
Volumes are abnormally high and up move looks stronger. Trader might take positions for intraday gains, but might not carry the investment positions as there is lack of news behind the stock move. The last news from the company was on May 13 when company has appointed new chief financial officer and stock corrected 2 trading sessions after that announcement. This might be a bounce from low level as traders might closing their short positions on the stock.
The latest data on short interest, the total number of shares of a security that have been sold short expressed as a percent of total tradable shares, reveals that consumer discretionary stocks have the highest average short interest standing at 5.6 percent.
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Materials and Technology are the other two sectors with short interest figures greater than the S&P 500 as a whole, 3.69 percent. On the contrary, utilities and health care stocks are the least shorted in the S&P 500.
Investors track short interest levels to gain a sense of where a stock might be headed, along with some insight into whether any positive news might force short-traders to cover their positions, pushing a stock higher.
Below is a list of the most heavily shorted stocks in the S&P 500.
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