Will GE's Buyback Salvage Its Share Price
Will GE's Buyback Salvage Its Share Price
Intel announced plans Wednesday to begin high-volume manufacturing of chips with its long-awaited tri-gate transistors, a move that analysts say will put it far ahead of its competitors in the long-term with regards to its ability to shrink the size of computer chips and enhance their power.
When it comes to transistors on computer chips, smaller size means more processing power. So when Intel holds its big press conference Wednesday, expect an announcement that will lead to a serious power boost for its chips -- perhaps from its long-awaited revolutionary tri-gate transistors.
The chip maker's earnings rose 29% as strong spending by businesses on new computers helped the company overcome a serious product design error and fallout from the deadly earthquake and tsunami in Japan. An extra week in the quarter also helped.
Are Mergers and Acquisitions Ready to Take Off?
Increasing violence in Libya caused oil prices to rise and stocks to fall 80 points to close at 12,090 on Monday. It didn't help that a Wells Fargo analyst also downgraded the semiconductor industry, sending shares of Intel down by 1.6%.
No wonder President Obama is visiting an Intel plant as he stumps for U.S. innovation and high-tech jobs. After all, Intel is a clear industry leader. Indeed, some analysts argue that for investors seeking entry in the global growth of technology, Intel is the one-stop answer.
Companies that have piled up cash over the past few years are finding one good use for it: Repurchasing their own shares. January alone saw $57 billion in buybacks, compared with $357 billion for all of 2010. While buybacks don't add value, they do give investors more options.
Last month, 96 CEO changes were announced by U.S. based companies, reports job-services firm Challenger, Gray & Christmas, among them the heads of Google and Advanced Micro Devices. The number is down 9% from December, but 8% higher than January 2010, when 89 CEOs left their corner offices behind.
Two days after Intel halted shipments of its 6 Series chipset, announcing it had found a flaw in the design, HP and Dell have warned that some of their new computers include the chips. Samsung also began offering refunds on PCs with the Intel chip Tuesday.
Samsung is offering full refunds for its computers affected by the faulty Intel chip, code-named Cougar Point. Intel has promised to reimburse computer makers for any related expenses.
The Obama administration is launching a "private sector alliance" to help entrepreneurs. Startup America Partnership will bring together entrepreneurs, start-up financiers, CEOs and others to help companies start or grow, the group said in a statement.
Intel Halts Chipset Shipment Over Design Flaws, Revises Outlook
The European Commission on Wednesday approved Intel's $7.68 billion acquisition of security-software company McAfee.
The world's largest chipmaker is looking to promote its technology products through a new association with the seven-time Grammy Award winner. Says will.i.am: "When I see an Intel chip, I think of all the creative minds involved that help to amplify my own creativity."
If we measure competitiveness by profits and cash balances, domestic companies have never been stronger. Unfortunately, that competitiveness has come out of the hides of the country's workers -- nearly 15 million of whom are out of work.
Stocks closed sharply higher Monday with the Dow Jones posting a triple-digit gain as technology stocks rallied after Intel raised its dividend and expanded its share repurchase program by $10 billion. The index last saw 12,000 in June 2008 -- on the way down.
Tech stocks rose after Intel increased its dividend and said it would buy back more of its stock. And materials companies jumped after a report showed that economists are more positive about growth and the job market than at any time since the start of the Great Recession.
President Obama brought executives from 13 major U.S. firms to the White House Wednesday to meet with Chinese Premier Hu Jintao. The corporate leaders will surely be angling for better access to China's markets, which could boost their stocks. But only a few are actually good investments now.
Apple, Bank of America, Morgan Stanley, IBM, GE, Goldman Sachs and Google are just a sampling of names releasing results this week. And if last week's numbers are any guide, the market should have plenty of reasons to rally -- especially because expectations aren't all that great.
Three years into a recession and a lumpy recovery, consumers aren't getting comfort from retail therapy. They're price-shopping online and jumping in and out of stores. So, bricks-and-motor merchants are looking for ways to make stores more convenient and flexible.
Stocks wrapped up the week on a positive note despite economic reports that fell short of expectations. But Cort Gwon of FBN Securities says there was lots to cheer about as fears over the debt crisis lessened in Europe and U.S. companies announced stellar earnings.
Semiconductor stocks climbed higher Friday following the financial results of bellwether chip giant Intel. But despite the robust results that beat Wall Street's estimates, analysts expect the industry's revenue growth will cool off to 5% for the year, versus the 30% seen last year.
Some of the best online stories for investors, including: Why the Nvidia-Intel deal is a win-win for everyone; the top 20 most influential blogs in financial media; what if Apple had gone into the Dow instead of Cisco?
After two years of go-go growth in the semiconductor sector as customers restocked lean inventories, the industry is expected to post more modest growth in 2011 as it faces lower average selling prices for chips and the cyclical demand for semiconductors hits a lull.
Intel Corp. (INTC) agreed to pay rival Nvidia (NVDA) $1.5 billion so that the chip giant can use Nvidia technology. The deal ends a legal battle between the two companies. Intel had previously sued Nvidia over the right to keep making an Intel-designed chip, BBC News reported. Nvidia then counter-sued.
AMD announced the resignation of CEO Dirk Meyer Monday, sending stock down over 4% in after-hours trading.
Alcoa, Intel and JPMorgan Chase will kick off a new earnings season this week when they report their results for the fourth quarter of 2010. Here's a quick look at what analysts surveyed by Thomson Reuters expect to see, followed by a glance at what's coming up on the economic calendar.
Tech Takeovers: A Good Bet For 2011 Profit
Despite all the amazing gadgets launched at the Consumer Electronics Show -- the smart TVs, 3-D technology, larger touch screens, and tablet PCs -- the bigger news in Las Vegas this week may be about price cuts.