Canadian Finance, Economics and Fiscal Analysis
I’m not much of a technical analysis guru but here is my depiction of the trendline of Cenovus Energy (TSX: CVE): Will this go on forever and end the year at $70/share? I wish, but incredibly unlikely unless if we’re heading into Weimar Republic inflation. Despite this price rise, the company is still relatively cheap … Continue reading “Modelling commodity companies”
Dell is buying itself out at $13.65/share. My quick summary is that for existing shareholders this is probably as good as it is going to get. Cash flows are going to decrease as the PC business continues to be eroded by tablets and mobile devices, and the company is going to be forced to face … Continue reading “Dell buys itself out at $13.65/share”
There are heavy rumours that Dell is seeking to go private. The mechanism will likely be through a leveraged buy-out assisted with some other capital partners. The necessary condition for this to occur is shareholder approval, and since Michael Dell still owns a substantial portion of the company (about 14% according to the last DEF14 … Continue reading “Dell going private makes sense”
I noticed recently that Dell (Nasdaq: DELL) slipped below $10/share. They’re now at $9.5/share or roughly a market capitalization of 16 billion (if you net out the cash and debt, the enterprise value is about $12 billion). This is on $3 billion income for the trailing 12 months, so something is completely out of whack … Continue reading “The Dell and PC hardware value trap”
I notice Intel (Nasdaq: INTC) did a proactive release indicating that their third-quarter expectation is below their public target: The company now expects third-quarter revenue to be $13.2 billion, plus or minus $300 million, compared to the previous expectation of $13.8 billion to $14.8 billion. Intel is trading around a P/Es of 10, but it … Continue reading “Intel and Dell value traps”