Top 5 ideas of the week:

 Yahoo (YHOO)

On July 16, Yahoo (YHOO) announced the hiring of Marissa Mayer as CEO to replace Scott Thompson. We were disappointed that Thompson had left the company because Dan Loeb of Third Point was tired of Thompson misrepresenting his educational background. Third Point had entered into its Yahoo position in Q2 2009 and, considering how Yahoo has been a dreadfully dead-money underperformer in that time period, we can see why every misstep on the part of Yahoo makes Dan Loeb cranky.  READ MORE

 Check Point Software Technologies (CHKP)

We think Check Point Software Technologies (CHKP) remains a strong value in the software technology industry. We are surprised that the company’s shares have dropped from a high of $65 in April to a low of $40.60 recently in the wake of soft guidance after it released its Q3 2012 earnings. While we reduced our target price from $65.65 to $58.19 recently, we believe that the company will see its momentum rebound next year plus it is still generating strong free cash flows. READ MORE

 Xerox Corporation (XRX)

We have been following Xerox Corporation (XRX) since the middle of January largely because David Einhorn (Greenlight Capital) had purchased 17M shares of the company in Q4 2011. We were attracted to the company because it had purchased Affiliated Computer Services in 2010 and we liked how Xerox was transitioning its revenue exposure from hardware towards IT and Business Process Operations Services. READ MORE


As everyone knows, SUPERVALU (SVU) has faced a significant set of headwinds. We were displeased to see the company’s performance momentum has regressed relative to the momentum it enjoyed in FY 2012. We have no illusions that the company is facing super challenges, however we believe it offers the potential for provide a super value for its customers, its current and potential investors and potential acquirers. READ MORE

 Intel Corporation (INTC)

On September 19, we published our report in which we evaluated Berkshire Hathaway’s (BRK.B) liquidation of its position in Intel Corporation (INTC) during the second quarter. In the wake of Intel preannouncing an earnings warning for the third quarter, we concluded that was a timely decision on the part of Warren Buffett and his investment team. We’re not surprised that Intel announced weakness in its Q3 results because we have seen that computing demand has shifted away from desktop PCs and laptops towards tablet computers and smartphones. READ MORE

Similar Posts

Warning: count(): Parameter must be an array or an object that implements Countable in /homepages/17/d368939019/htdocs/saibusresearch/wp-includes/class-wp-comment-query.php on line 405

Comments are closed.